Question

What are the social needs of auditing and the different types of audits and their relationship?

Answer 1

A social audit is usually a public disclosure of the social work performed by any company; Further, the evaluation of performance under the social responsibility of the company. Social Audit is how the business fulfilled its responsibilities on all stakeholders, customers, all company responsibilities.

What business / company is not only related to the internal people but they are also strongly connected with the people. The activities undertaken by such a company have a profound impact on the society. Not only does such a factor affect the society, it also has consequences for the government. So doing social audits is the need of the hour.

Types of audits 1. Internal Audit - Internal auditing is a freedom and objectivity consultancy, which is a system for maintaining the credit of the business, improving the activity / functioning of every component involved.

Demonstrates a smooth, relaxed and disciplined approach to assessing the risk, internal and / or internal risk of such an entity. 

2. External audit: External audits seem to be the basis of an external firm that includes a number of valuations, such as consultant services, tax consultants, legal facilities, and risk management consultants.

3. Compliance audit. This is an examination of the functioning of an event or some policy within the department to see if it monitors an internal regulation test. It is commonly used in a controlled industry or educational activity.

4. Legal audit: Legal audits appear to include financial audits of certain types of entities as required by government law or local authority. Nevertheless, statutory audits are only audits of financial statements required by local law.

5. Financial audit: Financial audit means that the auditor's opinion on those financial statements is terminated when the audit work is completed while the auditor is conducting the audit of the financial statements of the business independently.

General financial audits are conducted by an external audit firm that holds a CPA, and it is performed annually and in the last phase of the financial accounting period. This audit is also pronounced in the term financial statement auditing.

6. Operational Audit: It contains a detailed explanation of the business planning process, procedures and performance results. In this case the audit can be done either internally or externally. The result is an evaluation of operations.