CLASSIFICATION OF AUDIT

The Audit may be classified different classes on the basis of following:

(A)   Legislative Control:

On the basis of legislative control the audit may be classified into three types. These are:

i)        Statutory Audit:

Where the appointment of auditors, manner of audit, contents of audit report etc. are specifically mentioned in any enactment, the audit conducted with reference to them is called statutory audit. Statutory audit is compulsory audit and is to be carried out each year by an auditor called statutory auditor.

ii)       Govt. Audit:

The audit of account of states, Government departments, undertakings, local bodies are done by Government auditors. The appointment of auditor is as per the articles of the constitution of the country. Under this act the President shall appoint the Comptroller and Auditor General, who is the prime authority in the audit hierarchy of Government accounts.

iii)     Private Audit:

In this case there is no statutory or constitutional compulsion to get the accounts audited. For example, the sole proprietors, partnership firms get their accounts audited without compulsion in view of advantages of having audit.

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