Monday, December 22, 2008

TYPE OF AUDIT

Financial Statement Audit
A financial statement audit involves obtaining and evaluating evidence about an entity’s presentation of its financial position, result of operation, and cash flows for the purpose of expressing an opinion on whether they are presented fairly in conformity with established criteria-usually generally accepted accounting principles (GAAP).

Compliance Audit
A compliance audit involves obtaining and evaluating evidence to determine whether certain financial or operating activities of an entity conform to specified conditions, rules, or regulations

Operational Audit
An operational audit involves obtaining and evaluating evidence about the efficiency and effectiveness of an entity’s operating activities in relation to specified objectives.

1 comment:

Emmanuel Sarpong said...

Good. But what is risk assessment in auditing?
sarpemmanuel7@gmail.com