Classification of Audit
                     CLASSIFICATION 
OF AUDIT
Internal Audit
An internal audit is conducted continuously 
throughout the year by employees within a 
company or organization exclusively for internal 
purposes. This report is solely for internal control.
Source: accountsnotes.com
External Audit
Performed by an external auditor with no relation 
to the company. External auditors provide a more 
independent and neutral opinion.
Source: accountsnotes.com
Continuous 
Audit
Continuous auditing is a process whereby an 
organization monitors its operations on a regular, 
1-month or 3-month basis and identifies any 
changes or irregularities. 
Source: accountsnotes.com
Periodical 
Audit
Periodical, final or completed audit is conducted 
at the end of a financial period or after closing 
the books of accounts. This is for the purpose of 
final or end-term audits. 
Source: accountsnotes.com
Interim Audit
Interim audits assess profitability in between 
yearly audits, enabling corporations to declare 
interim dividends. The interim audit consists of a 
thorough review of all transactions and accounts 
up to the audit date. 
Source: accountsnotes.com
Balance Sheet 
Audit
A balance sheet audit is an evaluation of the accuracy 
of information derived from an organization’s balance 
sheet. This type of audit verifies the entries on the 
balance sheet, such as capital, liabilities, assets, 
provisions, reserves, and profit and loss.
Source: accountsnotes.com
Standard 
Audit
A standard audit refers to an audit based on test 
checking. During these audits, certain items are 
thoroughly examined. This involves a wide range 
of sampling techniques and statistical sampling 
methods.
Source: accountsnotes.com
Statutory 
Audit
When an audit is done as per law or it is 
compulsory under the conditions of the law, it is 
called a statutory audit. Example of organisations 
that carries out the statutory audit.
Source: accountsnotes.com
Non-statutory 
Audit
When auditing is not compulsory or statutory as per 
the authority but is executed to gain the advantage 
of the audit, it is called a non-statutory audit. sole 
proprietorship firm small-scale business and joint 
ventures are use cases of the non-statutory audit.
Source: accountsnotes.com
Cost Audit
During a cost audit, the costing system, 
technique, and accounts are examined in detail 
to ensure that they are correct. This is to ensure 
they are aligned with cost accounting standards.
Source: accountsnotes.com