Which of the following is not a kind of audit?
A. Statutory and private audit
B. Government and continuous audit
C. Continuous, final, Interim, Cash, Cost and Management audit
D. None of these
Answer: None of these
An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law.
The audit process results in an opinion on the financial statements. This gives assurance that the statements are free from material misstatement whether caused by fraud or error. Such an opinion will also help management fulfill their responsibility for financial reporting.
An audit can be done internally by employees of the organization but most often it is performed by external resources because they may have better objectivity.
An auditor is responsible for expressing an opinion on the quality of an entity’s internal control over financial reporting based on his or her examination.