Internal Audit:
Internal audit is not confined only to financial transactions but also is extended to the task of reviewing the internal process and internal control to ensure efficiency and economy of resource utilization. This makes it essential to review all the operations, process and internal controls of the entity and also evaluate the effectiveness of management.
Internal Audit includes, Internal Control System and Procedures, Custodian and safeguard of assets, compliances of policies, plans, procedures and regulations, Relevance and reliability of the information.
Management Audit:
A management audit is an assessment of how well an organization’s management team is applying its strategies and resources. A management audit evaluates whether the management team is working in the interests of shareholders, employees, and the company’s reputation. The primary objective of management audit is to ensure that the efficiency is maintained at all the levels of management, from higher level to low level of management. Through this process we can access whether or not the efficiency of the management is aligned with the organisational goals. Also, the auditor ensures the effectiveness and relevance of all these procedures at various levels.
GST Audit:
Audit under GST means inspection of returns, records and other documents furnished by the taxpayer. GST Audit is carried out to check whether the turnover, taxes paid, ITC refund claimed and ITC availed mentioned in his annual report are true and fair or not.
Every registered taxable person whose turnover during a financial year exceeds the prescribed limit [as per the latest GST Rules, the turnover limit is above Rs 2 crore, bur Rs.5 Crore for 2018-19^] shall get his accounts audited by a chartered accountant or a cost accountant.
Due Diligence Audit:
In business, a due diligence audit is basically a careful investigation into the complete financial picture of a company. Generally, these audits come before a purchase, merger or other major decision that could negatively influence the finances of one or more businesses. These audits are generally used to ensure that no hidden liabilities exist.
Technical due diligence is the process of analyzing and evaluating the technology, product, architecture and processes in an organization prior to the acquisition of a company or an investment in it.
Tax Audit:
Under direct taxes, the CBDT has posed onerous responsibility on the auditor via the Income Tax Act 1961 which has various provisions requiring a compulsory Tax audit. The Income Tax Act 1961 states various provisions for public charitable trust, the corporate and non-corporate assessee, and others to conduct a Tax audit of accounts for tax purposes.
When the annual gross turnover or professional receipt of an assessee exceeds the limit as specified in the Income Tax Act 1961, the Income tax act makes it compulsory to conduct an audit under section 44AB of Income Tax Act, 1961. In common parlance, such audit is referred as “Tax audit”
Statutory Audit:
Statutory Audit is a type of audit which is mandated by a Law or a Statute to ensure the books of accounts presented to the regulators and public are true and fair. Statutory audit is mandatory if certain criteria are being met by the business.
Companies are governed by the Companies Act 2013. This act requires every company registered under the Companies Act 2013 to get there accounts audited. Thus an audit conducted for such a companies that is governed by Company law will be known as a statutory audit.
