AUDIT & ASSURANCES

Financial Audit

• Purpose: To provide assurance that an organization’s financial statements are accurate, complete, and in accordance with relevant accounting standards (e.g., GAAP or IFRS).
• Conducted by: External auditors or Chartered Accountants
• Outcome: Auditor’s report, typically expressing an opinion on whether the financial statements present a true and fair view.

Internal Audit

• Purpose: To evaluate and improve the effectiveness of risk management, control, and governance processes within an organization.
• Conducted by: Internal audit department or internal auditors employed by the organization.
• Outcome: Recommendations for improvement in operations, controls, and governance.

Operational Audit

• Purpose: To assess the efficiency and effectiveness of an organization’s operations. It looks beyond financial reporting to evaluate the use of resources, processes, and performance.
• Conducted by: Internal or external auditors.
• Outcome: A report with insights on improving operational efficiency and effectiveness.

Compliance Audit

• Purpose: To determine whether an organization is following external regulations, internal policies, or contractual agreements.
• Examples: Audits to ensure compliance with laws like Sarbanes-Oxley Act (SOX), environmental laws, or industry-specific regulations.
• Outcome: A report highlighting areas of non-compliance and recommendations for corrective actions.

Information Systems (IT) Audit

• Purpose: To evaluate the security, integrity, and efficiency of an organization’s information systems and IT infrastructure.
• Focus: Cybersecurity, data integrity, IT governance, and compliance with IT-related regulations.
• Outcome: A report on system vulnerabilities, risk management, and security improvement recommendations.

Tax Audit

•  Purpose: To verify whether a company or individual is complying with tax laws and accurately reporting taxable income and expenses.
• Conducted by: Chartered Accountants
• Outcome: Assessment of tax liabilities and potential penalties if discrepancies are found.

Forensic Audit

• Purpose: To investigate financial irregularities, fraud, or embezzlement. This type of audit is often used in legal proceedings.
• Conducted by: Forensic accountants or auditors.
• Outcome: A detailed report that may be used in court as evidence in fraud investigations.

Statutory Audit

• Purpose: A legally required audit of a company’s financial statements, typically for public companies or certain regulated industries.
• Conducted by: External auditors.
• Outcome: A formal audit opinion that is required by law.

Due Diligence Audit

• Purpose: Conducted when an organization is considering a merger, acquisition, or investment to evaluate the financial, legal, and operational risks.
• Outcome: A comprehensive report identifying risks and opportunities associated with the transaction.

Social Audit

• Purpose: To assess the impact of an organization’s social responsibility activities and community engagement efforts.
• Focus: Social welfare programs, employee relations, and community development initiatives.
• Outcome: A report on the social impact and sustainability of the organization’s activities.