Two Main Types of Audit
The INTOSAI Auditing Standards distinguish basically two types of audit that a Government Auditor may perform:
- Regularity audit or Statutory audit, which is a Financial audit of the financial reporting or budget reporting of the audited entity.
In a regularity audit, the audit report contains the auditor's opinion.
- Performance audit, refers to an examination of a program, function, operation or the management systems and procedures of a governmental or non-profit entity to assess whether the entity is achieving economy, efficiency and effectiveness in the employment of available resources.
In a performance audit, the report should contain a statement of assurance on those items tested for compliance, as the auditor's conclusion (as opposed to opinion).
The INTOSAI's (and GAO's or ECA's) Performance audit correspond to the Review Engagements or "Assurance Engagements other than Audits" of the IFAC.
Read more about this topic: International Organization Of Supreme Audit Institutions
Famous quotes containing the words main and/or types:
“So long as war is the main business of nations, temporary despotism—despotism during the campaign—is indispensable.”
—Walter Bagehot (1826–1877)
“As for types like my own, obscurely motivated by the conviction that our existence was worthless if we didn’t make a turning point of it, we were assigned to the humanities, to poetry, philosophy, painting—the nursery games of humankind, which had to be left behind when the age of science began. The humanities would be called upon to choose a wallpaper for the crypt, as the end drew near.”
—Saul Bellow (b. 1915)