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- What are the different types of audits and their purposes?Answered by verified finance professionalsAudits come in various types, each serving distinct purposes. A financial audit evaluates the accuracy and fairness of an organization’s financial statements, ensuring compliance with accounting standards like GAAP. An internal audit focuses on assessing internal controls and risk management processes within an organization to enhance governance and operational efficiency. The compliance audit ensures that a company adheres to relevant laws, regulations, and industry standards, especially in highly regulated sectors like healthcare. An operational audit examines the effectiveness and efficiency of business operations, aiming to identify areas for improvement and cost-saving opportunities. Forensic audits are performed when there’s suspicion of fraud, financial manipulation, or misconduct, with the goal of uncovering illegal activities. Tax audits verify the accuracy of tax returns and ensure that tax laws are properly followed by individuals or businesses. Finally, IT audits assess the security, integrity, and compliance of an organization's information systems, ensuring data protection and operational continuity.Read moreTrishla Maniar4 years exp · India · CA, CPA (US)
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- Information Systems Audit. An information systems audit involves a review of the controls …
- Internal Audit. An internal audit is usually conducted by an in-house audit team, and is …
- Investigative Audit. An investigative audit is an investigation of a specific area or individual …
- Operational Audit. An operational audit is a detailed analysis of the goals, planning …
- Tax Audit. A tax audit is an analysis of the tax returns submitted by an individual or …
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