Other Forms Of Audit

In this tutorial, we will learn about other forms of the audit through which the auditors have to certify the statement of accounts of the bank as at the closure of the financial year reveal an accurate and fair view of the bank financial position.

We think of auditing, and we tend to focus on financial audit, internal audit, or cost auditing. However, various other forms of inspections occur in the economy.

Some of these are very crucial for the existence of the organization. Some such audits are – bank audit, tax audit, insurance audit, etc.

Bank Audit: 

The vast amount of public monies handled by the banks makes it imperative that the activities of the without strangulating the spirit of entrepreneurship. Audit forms an integral and essential part of such monitoring and regulation.

The auditors have to certify the statement of accounts of the bank as at the closure of the financial year reveal an accurate and fair view of the bank financial position, adequate provision for nonperforming assets, or bad debts in the books. All expenses and income have accounted for, and profit correctly worked out.

Co-operative Society Audit:

The affairs of co-operative societies are often managed by persons who do not possess adequate managerial, technical, or accounting skills.

The independent financial auditors of co-operative societies are therefore required to report on some aspects also. The following points must in the audit of the co-operative society:

  • The auditor should go through the rules and regulations of the organization and see how far they are being followed by it.
  • We should also examine the internal check system in operation in society.
  • He should vouch for the receipt of interests and return of loans from the borrowers. Proper records must remain for this purpose.
  • He should vouch for the loans granted to the borrowers by reference to the agreements.
  • He should verify the assets and see that the stock is valued correctly.
  • He should especially verify the cash in hand and investments of such a society.
  • He should also check other management and establishment expenses.

Insurance Audit: 

The insurance audit is the examination of operations, records, and books of accounts of the insurance company. The auditor performs a check to ensure that the customer has paid the appropriate premium for the risk cover provided to him.

Government Audit: 

This audit aims to ensure that the government’s financial transactions are correctly executed under sanctions and authorities and recorded in the books of accounts. Comptroller and Auditor

General of India must audit the receipts and expenditure of the Union Government and State government. Further, the Government audit also includes the verification of government companies conducted by C&AG.

Management Audit: 

 An emerging concept of auditing, it has originated from an America management audit. It is an act of evaluation of all departments’ activities to provide appropriate suggestions to the management to help their work.

Management audit is a new concept and goes beyond the regular inspection. It is a comprehensive and critical review of all aspects of management. It is concerned with the approval of the efficiency of management. It can be said to be an expansion of the internal audit, and the idea has developed recently.

Management auditing is the future-oriented task that is evaluated on time in management, sales management, etc. The main objective of a management audit is to improve the profit earning capacity, work of management, objectives of the program, social purposes, and human resource development so that organizational goals can easily be attained.

It refers to the existence of a control system, compliance of rules and regulations, the process of managerial decisions, etc. Generally, management audit and operational audits are mandatory, but it re-commendatory certainly.