1)On the basis of legislative
control:
(a)Statutory Audit: Those audit which are mandatory is known as
statutory audit. This is done to determine whether an organization is providing
an accurate financial position or not.
ex-Company/Financial institution/Joint stock company audit.
(b)Government audit: When government institutions are audited by
a government auditor then it is known as government audit.
ex-Audit of BTCL, BRTA
(c)Private audit: The audit which is done for specific purpose
is known as private audit. This type of audit can be done only for some
specific section.
ex- audit of accounts receivable or inventory.
2)On the basis of relation
between auditor and management:
(i)Internal audit: When an audit of an organization is done by
an auditor of other branches but of same organization is known as internal
audit. Internal audit is done by the auditors who are appointed by the
management.
ex-when the AB bank of Sylhet branch is being audited by the auditors'
of AB bank Dhaka branch.
(ii)External audit: The audit which is completed by an external
auditor, who is appointed by the board of directors/shareholders of an
organization is known as external audit.
ex-Audit of AB bank by a renowned CPA firm.
3)On the basis of
periodicity:
(i)Continuous audit: The audit which is done continuously for
the improvement and verification of error of an organization is known as
continuous audit.
-this type of audit is done monthly, quarterly.
(ii)Interim audit: The audit which is completed during the
middle of a fiscal year of an organization is known as interim audit.
-a corporation might have an interim audit covering the first nine
months of the fiscal year.
(iii)Periodical audit: The audit which is done after a certain
period of time is known as periodical audit.
-this type of audit is completed at the end of a year, when the balance
sheet, profit & loss account is being prepared.
(iv)Occasional audit: The audit which is done on the basis of
necessity is known as occasional audit.
4)On the basis of subject
matter:
(i)Financial audit: This type of audit is completed by auditing
the financial statement of a business organization.
(ii)Operational audit: The audit which is completed by auditing
whether an organisations day to day operational activities are recorded or not.
(iii)Cost audit: This type of audit is completed by auditing the
cost accounting section as total manufacturing cost/costs of goods
sold/manufactured of an organization.
(iv)Management audit: This type of audit is done for justifying
whether the management policy of an organization is fair or not.
5)On the basis of manner of
checking:
(i)Standard audit: The audit which is done by following standard
rules and regulation of an audit is known as standard audit.
(ii)Balance audit: The audit in which all the balance sheet item
as accounts payable/receivable, cash, land etc. are audited is known as balance
audit.
(iii)Vouch & Post audit: The audit in which each transaction
of a business organization is being audited is known as vouch & post audit.
6)On the basis of coverage:
(i)Complete audit: The audit in which all the section as well as
the financial information of an organization is being audited is known as
complete audit.
-this type of audit is done by checking up all the books of accounts of
each section
(ii)Partial audit: The audit in which a particular area/section
of an organization is being audited is known as partial audit.
- audit of a companies accounts section
