Types of Audit in Business
The expansion of the audits has led to a diversification of concepts or types of audit:
* External or independent Audit:
Also known as auditing of financial statements. It is performed by competent and independent through the implementation of procedures subject to generally accepted standards, in order to express an opinion on the fairness with which these financial statements present the financial situation.
* Internal audit:
An activity is complete, continuous and independent. It is made in an organization, personnel of the same, consisting in verifying the existence, performance, effectiveness and optimization of internal controls of the organization.
* Operational Audit:
A review of the operating procedures of any part of an organization (department, division, section) in order to evaluate the effectiveness and efficiency of it. Can be performed by internal or external auditor.
* Administrative Audit:
It is done when it comes to evaluating a specific role within the organization, in order to determine if you get maximum efficiency in this role in particular.
* Management Audit:
The objective is to evaluate the management, analysis and diagnosis of the performance of leaders and business leaders regarding objectives, policies and control systems. So they can determine existing weaknesses in terms of criteria of economy, efficiency and effectiveness.
Sine qua non is to be the total independence of the auditor, and that is that otherwise all would be completely nullified his opinion, lacking in credibility and validity to those who had placed their trust in him.