Call Now

Get The App


Types of Audit

Audit is not legally obligatory for all types of business organisations or institutions. On this basis audits may be of two broad categories


Audit required under law


Voluntary audits.


Now let us understand one by one




Organisations which require audit under law are the following:

(i)Companies governed by the Companies Act;


(ii)Banking companies-ex HDFC BANK LTD

(iii)Other statutory bodies required by their regulators or by specific Act.


Anchor will speak and these names will come in the centre and then this will keep on going into table


 Voluntary audit

In the voluntary categorythere  are the audits of the accounts of   padia HUF

 etc. In respect of such accounts, there is no basic legal requirement of audit. Many of such enterprises as a matter of internal rules require audit. Some may be required to get their accounts audited on the directives of Government for various purposes like sanction of grants, loans, etc. But the important motive for getting accounts audited lies in the advantages that follow from an independent professional audit

Explore All Chapters