Lecture Notes: Audit Types

Overview of Audit Types

• Types of Auditors
  • External Auditor: Performs external audits.
  • Internal Auditor: Performs internal audits.
  • Forensic Auditor: Conducts forensic audits.
  • Statutory Auditor: Also known as a government auditor, performs government audits.

Types of Audits

1. External Audit

   • Involves a three-party system.
   • Provides an opinion on the audit report.
   • Based on auditing standards.
   • Commonly involves financial statement audits.
   • Can be performed by internal auditors as well.

2. Internal Audit

   • Conducted by auditors within the organization.
   • Focuses on:
     • Control evaluation
     • Process evaluation
     • Asset protection
     • Legal compliance (can also be called compliance audit)
   • Benefits the organization by improving processes and efficiency.

3. Forensic Audit

   • Similar to investigations in police work; focuses on evidence collection.
   • Requires skills in both accounting and investigation.
   • Related to cold cases and seeks to find hidden reasons behind discrepancies.
   • Special programs available for training in forensic accounting.

4. Compliance Audit

   • Assesses if the organization adheres to legal regulations and internal policies.
   • Can be part of internal audit processes.

5. Operational Audit

   • Often overlaps with internal audit.
   • Examines goals, planning processes, and operating results.
   • Can include:
     • Strategic Audit: Evaluates organizational strategies.
     • Sustainability Audit: Compares organizational practices with industry best practices.

Importance of Certifications

• External Audit: Requires CPA (Certified Public Accountant) certification.
• Internal Audit: CPA not necessary, but Certified Internal Auditor (CIA) certification is available.
• Forensic Audit: Certified Forensic Auditor required.
• Information Systems Audit: Certified Information System Auditor (CISA) certification available.

Tax Audit**

• Conducted by government entities (e.g., BIR in the Philippines).
• Ensures compliance with tax regulations.

Information Systems Audit**

• Relevant due to automation in accounting systems.
• Involves big data and blockchain technologies.

Conclusion

• This lecture served to introduce various types of audits and their significance in organizational compliance and efficiency.
• Further discussions on additional audit types will be addressed in future sessions.