Whether a small business owner or an established entrepreneur, you need to go through the process of auditing for your business. No matter how much complicated it sounds, a good audit is actually beneficial for your company. It will find out the cash flow, profits, loss, investments, purchase along with many financial loopholes. While selecting the Auditor in Delhi, you must keep in mind that the person should have the required experience and efficiency to handle the work.
There are so many different types of audits that you should know to find out the best for your company.
How many types of Audits are there?
The audit is the official examination of the financial performance of the company in a year. The auditor takes a look at the financial statement to compare the information with the accounting book. In the third party audit, the auditors come from the outside of the company to check the financial transaction.
Many businesses are quite organized in keeping all the financial records of the company. Often they have an annual audit before the end of the financial year.
However, there are many other companies that don’t keep thorough records and for that, the audit takes more time to complete in those organizations.
The types of audits depend on the nature of the business. Many industries, like construction companies, like to have audits at the end of a project to figure out how much they have spent on it.
In a nutshell, we can say that the audit will help the business to run smoothly. So here we will talk about the types of audit that help in the process.
1. Internal Audit: This audit happens within the business when the owner has to initiate the audit conducted by the chartered accountant or financial manager of the company. In case the business has shareholders or board members, the internal audit helps them to stay updated on the business.
2. External Audit: The external audit is conducted by a third party Auditor in Delhi. The main purpose of the audit is to ensure the accuracy of the financial report as the auditor will not be connected with the business.
3. IRS Tax Audit: To know the tax filing return, the IRS tax Audit takes place. The auditors check for any discrepancy in the return calculation to avoid the overpay or underpay of the tax amount.
4. Financial Audit: It is the most common type of audit to check the fairness and accuracy of the financial statement of business-like transactions, balance sheet, and procedure.
5. Operational Audit: It is quite similar to internal audit revealing the goal, procedure, planning process, and operational result.
6. Information System Audit: This type of audit is made for IT and software companies. It detects issues like data processing, software development, and computer system.
7. Payroll Audit: The payroll process of the company is checked in the payroll audit. It is also an internal process.
8. Pay Audit: This audit helps you to identify the pay discrepancies among the employees of the company.
