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1. Internal audit nothing but the checking the product that you PRODUCED.
2. External audit is checking your product by your customer.
3. Here it means you may not find mistakes in your processes but a third man who comes and check the SYSTEM he may SEE some deviations in the system and give suggestions for the IMPROVEMENTS of the system.

Internal audit is an INDEPENDENT appraisal FUNCTION which is established by the MANAGEMENT of an organization for the REVIEW of its internal control system as a service to the organization. To learn about the SCOPE of internal audit.

Internal audit is an independent appraisal function which is established by the management of an organization for the review of its internal control system as a service to the organization. To learn about the scope of internal audit.

The basic principles of financial internal control are explained below:Financial and accounting operations must be separated that is the handling of cash and the recording of the movement thereof should be done by different persons. Responsibility for the performance of the JOB must be clearly stated so that there may be no room for doubt or confusion subsequently.

Too much confidence should not be pinned in one individual. Nearly all frauds have been committed by TRUSTED officials or employees. It is interesting to note that frauds have occurred owing to their being trusted. Relation principle relating to transfer of an employee from one job to another should be the inflexible guiding rule. This is an effective safeguard against collusion and is RECOGNIZED as an important canon of sound organization.

Mechanization of the work WHEREVER feasible and PRACTICABLE should be resorted to, mechanical devices such as cash register, recording time clocks, calculation machines should be introduced. A system of control accounts should elegantly be fitted in the book keeping system.

The work should be so arranged that work done by one employee should be properly checked by independent employee. Such continuous and constant checking goods moral control and the errors and the frauds cannot go undetected.

The basic principles of financial internal control are explained below:Financial and accounting operations must be separated that is the handling of cash and the recording of the movement thereof should be done by different persons. Responsibility for the performance of the job must be clearly stated so that there may be no room for doubt or confusion subsequently.

Too much confidence should not be pinned in one individual. Nearly all frauds have been committed by trusted officials or employees. It is interesting to note that frauds have occurred owing to their being trusted. Relation principle relating to transfer of an employee from one job to another should be the inflexible guiding rule. This is an effective safeguard against collusion and is recognized as an important canon of sound organization.

Mechanization of the work wherever feasible and practicable should be resorted to, mechanical devices such as cash register, recording time clocks, calculation machines should be introduced. A system of control accounts should elegantly be fitted in the book keeping system.

The work should be so arranged that work done by one employee should be properly checked by independent employee. Such continuous and constant checking goods moral control and the errors and the frauds cannot go undetected.

Internal Audit is an audit, it is carried out EITHER by a separate department WITHIN the BANK or a FIRM of chartered accountant.

Internal Audit is an audit, it is carried out either by a separate department within the bank or a firm of chartered accountant.

Providing KEY description on the type of AUDIT to be taken place and to ANALYSE the responsibilities during the field work as well as client to be aware of what is GOING to happen after the field work.

Providing key description on the type of audit to be taken place and to analyse the responsibilities during the field work as well as client to be aware of what is going to happen after the field work.

ATTEMPT of a legally review of the accuracy of an entities FINANCIAL RECORDS.

Attempt of a legally review of the accuracy of an entities financial records.

Audit control procedures are policies and procedures in addition to control environment, (altitude,AWARENESS and actions of directors and management REGARDING the INTERNAL control SYSTEM) which the management has established to achieve the ENTITY specific objectives.the mix of type of controls implemented by the management will depend on the control objectives and the size of the entity.

Audit control procedures are policies and procedures in addition to control environment, (altitude,awareness and actions of directors and management regarding the internal control system) which the management has established to achieve the entity specific objectives.the mix of type of controls implemented by the management will depend on the control objectives and the size of the entity.

It is requested by AUDIT committee or the Company's; shareholders. The main objective of modern Audit is to HELP the MGMT to achieve its VARIOUS objectives by bringing a systematic APPROACHES and EVALUATING the risks.

It is requested by Audit committee or the Company's; shareholders. The main objective of modern Audit is to help the MGMT to achieve its various objectives by bringing a systematic approaches and evaluating the risks.

1. STATUTORY Audit
2. Non-statutory Audit
3. EXTERNAL Audit
4. Internal audit
5. Final Audit
6. SOCIAL audit
7. PERFORMANCE Audit

This is the AUDIT not SPECIALLY required by law this SCOPE of the audit will be OUTLINE by the contract between the AUDITOR and the clients.

This is the audit not specially required by law this scope of the audit will be outline by the contract between the auditor and the clients.

EXTERNAL AUDIT is that which is critical REVIEW of the representation of the published financial statements it is compulsary for all COMPANY;s which are listed in the STOCK exchange.

External audit is that which is critical review of the representation of the published financial statements it is compulsary for all company;s which are listed in the stock exchange.

This is a review of operation CARRIED out sometimes CONTINUOUSLY specially ASSIGNED staff with in the client business.

This is a review of operation carried out sometimes continuously specially assigned staff with in the client business.

Final AUDIT is COMMENCED when all ACCOUNT has been CLOSED and final ACCOUNTS is been prepared.

Final audit is commenced when all account has been closed and final accounts is been prepared.

social AUDIT is PERFORMED to KNOW the CORPORATE social responsibility.

social audit is performed to know the corporate social responsibility.

CARO means company AUDIT report ORDER 2004.It describes the matter on WITCH Statutory AUDITORS has to report in their Audit Report.

CARO means company audit report order 2004.It describes the matter on witch Statutory Auditors has to report in their Audit Report.

CONTACT the BOARD of directors or the audit committee. They should ENSURE the independence of internal auditing.

Contact the board of directors or the audit committee. They should ensure the independence of internal auditing.

DECOMMISSION Liability is COSTS that a company expects to INCUR in the FUTURE when the plant is SHUT down.

Decommission Liability is costs that a company expects to incur in the future when the plant is shut down.

ONE AUDITING FIRM can AUDIT other auditing firm.

One auditing firm can audit other auditing firm.

Vouching is the process of CHECKING for the EXISTENCE an example for this is checking from the FINAL RECORD to the supporting document.

Vouching is the process of checking for the existence an example for this is checking from the final record to the supporting document.

Tangible Assets are those assets which we can SEE or TOUCH LIKE fixed ASSET ,machinery,etc.

Tangible Assets are those assets which we can see or touch like fixed asset ,machinery,etc.

INTANGIBLE ASSETS are those which we can't be seen LIKE goodwill of the company.

Intangible assets are those which we can't be seen like goodwill of the company.

To scrutinize that work DONE was PROPERLY or not according to prescribed RULES and regulations. To AVOID discrepancies while doing work.

To scrutinize that work done was properly or not according to prescribed rules and regulations. To avoid discrepancies while doing work.