Question

There are several types of audit services that are provided by auditors. Identify and define three of these types of audits.

Answer 1

1. Internal Audit : This audit involves verification of process controls within the organisation. The purpose of this audit is to ensure that the operations in the company are performed according to the standard operating procedures set and there are no control lapses.

2. Information Systems Audit : This audit involves verification of software development, access controls to computer systems and date processing within the organisation. The purpose of this audit is to ensure that the IT systems in the organisation are operating effective, giving the desired output and protected from unauthorised access or cyber attacks.

3. Tax Audit : This audit involves verification of tax records and returns. The purpose of this audit is to endure that the tax calculations and tax payments by the company are valid and in compliance with the law of the land.