7 types of audits you need to know today

  • Audits are essential tools for the good management of any company, and many types of audits exist and are necessary to be performed. Managers need to know and understand about them so that they can perform this task as efficiently as possible.

     Audits are in charge of assessing whether the activities practiced by the organization are in accordance with the parameters that were planned and established previously.

     Do you know what the types of audits and their activities are? We have separated some for you. Check out!

     What is auditing?

     Before we actually talk about types of auditing, it is important that you understand what it is. The word audit comes from the English to audit , which means to examine, adjust, certify.

     Audits have this function: to carry out careful and systematic reviews of the activities developed by companies, looking at different areas.

     In addition to the records and documents, the audit also serves to verify that the operations are consistent with the whole of the organization.

     In United Arab Emirates, legislation requires some companies to periodically undergo an external and independent audit.

     This means that the assessment cannot be made by the team itself in a process called internal audit.

     What are the types of auditing?

     Before we talk about some of the existing types of audits, let's explain about the possible models, which are two: internal or external audits.

     The internal audit is carried out by an employee of the company, in a manner close to the boards and presidencies.

     Its main function is to ascertain whether the accounting and internal control processes are effective, preserving the coherence between the internal procedures and the policies defined by the company.

     Its objective is to improve routine processes, act on correcting possible failures and monitor business activities.

     The external audit, on the other hand, is carried out by independent auditors, without ties to the audited company. Like internal audit, its function is also to evaluate the company's internal systems.

     In external auditing, the main focus is on proving the veracity of the data . For that, the final document is a technical opinion that can be done periodically.

     7 types of audit

     Now that you understand the two possible models, we can talk about some types of auditing that exist. We have separated the most important ones for you to stay on top of the theme!

    1. Accounting audit

    The accounting audit investigates all the company's financial documentation.

     This type of audit is a careful analysis to assess whether equity is being managed according to guidelines and compliance. Its main objective is to reduce the rates of corporate impropriety.

     With the analysis of the accounting documents, it is possible to check if the account of the financial statements is compatible with the financial, economic and patrimonial situation of the organization.

     In addition, the accounting audit can identify situations that have damaged the company's equity, through accounting records.

    1. Financial audit

    The financial audit takes care of the work with the values, that is, the guarantee that the cash registers, statements, entries and exits are always up to date.

     This process also involves the analysis of investments and investments, seeking that the money has a return and not losses for the organization.

     With this audit, it is possible to guarantee the efficiency of financial control, hinder actions that compromise the company's cash, provide greater security to the internal controls of the financial department and present more appropriate solutions, such as the implementation of a financial management system.

    1. Fiscal and Tax Auditing

    Tax analyzes, on the other hand, ensure that tax aspects are complied with, according to the legislation.

    United Arab Emirates tax issues are complex, so having control over legal issues means that companies do not pay more taxes, fees or tariffs than they need to.

    1. Operational audit

    In this audit, the objective is to evaluate and analyze the functioning of the company in its routines, processes and methodologies adopted.

    It provides diagnostics and proposes solutions aimed at greater efficiency, savings and effective use of resources.

    Performance auditing is a comprehensive analysis of the performance of an organization's management.

    1. Systems audit

    Many companies, in order to improve their productivity and performance, adopt management software and systems that help in carrying out tasks.

    In this way, systems auditing is one of the possible types of audits to be performed in an organization.

    Here, the efficiency, safety and performance of all the technological solutions adopted are evaluated.

    1. Environmental audit

    Environmental auditing is part of the processes and is concerned with the impact of the company's activities on the environment in which it operates.

    Here, it is verified whether the company's conduct and environmental performance correspond to the established criteria of the current legislation.

    The choices of suppliers that pollute less or that do not promote laboratory tests on animals are examples of solutions in environmental auditing.

    1. Quality audit

    The quality audit assesses whether the working methods and products and services are within the standards established by the company itself.

    In addition, the quality audit checks whether the company complies with external standards, such as health surveillance or technical standards, such as ISO.

    Audits are very important processes and induce continuous improvement within an organization.

    It is important to keep in mind that auditing is not a bad process for looking for errors, but it does offer several benefits and a more strategic view for organizations.

    The audit allows the definition of management risks , gives more knowledge about the processes and controls, prevents errors and fraud and gives greater reliability and credibility to the business.

    Observing the processes, documents and methodologies used makes it possible to evaluate the way of working, to understand what is going well or not, and to give an opportunity to improve the processes.

    Have you done any of these types of Auditors in Dubai? Take advantage that now you know more about the topic and learn more about process management and its importance!