Statutory audit is conducted only after approval by higher authorities and for the … As a result of this, a third party can express an opinion of the person / organization / system (etc.) 1- Audits performed under the Generally Accepted Auditing Standards (GAAS) Such audits don’t only cover account balance testing, they also evaluate fraud risks and management/control systems. Audit reports consist of an Introductory section, Financial Section, required supplemental information, and findings and recommendations. This type of engagement is called limited assurance. These three core statements are intricately are audited by a registered CPA. It is one of the most common types of audit found in many firms. Energy audits are conducted on buildings through an inspection or analysis of their energy efficiency and usage. The result of reviewing and investigation will be reported to shareholders and other key internal stakeholders of the entity for their decision making or others purpose as they needed. The first of the various types of management audit is financial management audit. Statutory audit is referring to an audit of financial statements for the specific type of entities required by law or local authority. Most of the entity prepares its financial statements based on IFRS, and some entity’s financial statements are prepared based on local GAAP. Internal audits are carried out by a trained employee whose job is not related to the tasks being audited. An Independent auditor does a financial audit while a compliance audit is done by any person who meets qualification criteria may or may not independent. There are many audit types but here we will discuss three Different Types of audits 1. eval(ez_write_tag([[580,400],'wikiaccounting_com-medrectangle-3','ezslot_4',103,'0','0'])); The audit is classified into many different types and levels of assurance according to the objectives, scopes, purposes, and procedures of how auditing is performed. Usually a firm hires an accountant from within the company in order to keep information within the company. Financial Audits. Through a variety of different audit procedures such as interviews, … Financial audits are performed to ascertain the validity and reliability of information, as well as to provide an assessment of a system's internal control. The statutory audit is normally performed by external audit firms and the audit report will be issued by the auditor and submit to the government body by the entity. The external or independent audit is that an outside company supervises that the financial statements of an organization comply with the specific regulations. For example, NGO are working on public health and most of the money spend are related to public health. Financial audit refers to the audit of the entity’s financial statements by an independence auditor where audit opinion will be provided on those financial statements after auditing works are done. To minimize the penalty as the result of the tax audit, the entity is recommended to follow all the requirements set by tax law and for those areas that they are not sure, the entity should engagement with tax consulting firm for advising. 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