Audit types

  • Release version: Washingtondc
  • Updated February 1, 2024
  • 2 minutes to read
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    Summary of Audit Types

    This document provides a concise description of various audit types relevant to organizations, clarifying their specific purposes in audit engagements and compliance activities.

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    Key Features

    • Internal Audit: Evaluates internal controls, corporate governance, and accounting processes.
    • External Audit: Independent examination of financial statements prepared by the organization.
    • SOX Audit: Assesses compliance with Sarbanes-Oxley regulations regarding internal controls over financial data.
    • IT Audit: Reviews the information technology infrastructure, policies, and operations.
    • Financial Audit: Objective evaluation of financial reports to ensure accuracy for stakeholders.
    • Compliance Audit: Verifies adherence to external laws and internal guidelines.
    • Certification Audit: Confirms conformance to ISO 9001 standards before certification issuance.
    • Regulatory Audit: Ensures project compliance with relevant regulations and standards.
    • Operational Audit: Examines business practices to identify efficiency and effectiveness improvements.
    • Continuous Audit: Ongoing evaluation of processes using technology for real-time error checking.
    • Vendor Audit: Assesses contractors' compliance with contracts and agreements.
    • Customer Audit: Reviews customer perceptions and needs to evaluate service impact.
    • Store Audit: Analyzes retail performance through data collection on operations and sales.
    • Quality Audit: Systematic examination of quality systems by internal or external auditors.
    • Project Audit: Reviews project management standards compliance.

    Key Outcomes

    Understanding these audit types enables ServiceNow customers to effectively implement compliance measures, improve operational efficiency, and ensure the integrity of financial reporting. Each audit type serves a critical role in maintaining organizational accountability and enhancing stakeholder trust.

    There are many types of audits and each of the audit types has a specific use in an audit engagement.

    Audit Type Description
    Internal Audit An internal audit checks a company's internal controls, corporate governance, and accounting processes.
    External Audit An external audit is an independent examination of the financial statements prepared by the organisation.
    SOX Audit A Sarbanes Oxley (SOX) compliance audit is a measure of how well your company manages its internal controls. While SOX doesn't specifically mention information security, for practical purposes, an internal control is understood to be any type of protocol dealing with the infrastructure that handles your financial data.
    IT Audit An IT audit is the examination and evaluation of an organization's information technology infrastructure, policies and operations.
    Financial Audit A financial audit is an independent, objective evaluation of an organization's financial reports and financial reporting processes. The primary purpose for financial audits is to give regulators, investors, directors, and managers reasonable assurance that financial statements are accurate and complete.
    Compliance Audit A compliance audit is an independent evaluation to ensure that an organization is following external laws, rules, and regulations or internal guidelines, such as corporate bylaws, controls, and policies and procedures.
    Certification Audit A certification audit is an audit your registrar conducts to verify conformance against the ISO 9001 standard before they issue your official ISO 9001 certificate.
    Regulatory Audit The aim of a regulatory audit is to verify that a project is compliant with regulations and standards.
    Operational Audit An operational audit is an examination of the manner in which an organization conducts business, with the objective of pointing out improvements that will increase its efficiency and effectiveness.
    Continuous Audit A continuous audit is an internal process that examines accounting practices, risk controls, compliance, information technology systems, and business procedures on an ongoing basis. Continuous audits are usually technology-driven and designed to automate error checking and data verification in real-time.
    Vendor Audit A vendor audit is performed for a company that aims to attain an objective assessment of its contractors' or vendors' compliance to the terms, conditions and intent of the contracts or agreements between two entities.
    Customer Audit A customer audit is a detailed review of how your company is perceived by its customers, a review of each customer's needs, and an evaluation of the role your company is playing in each of your customer's businesses.
    Store Audit A store audit assesses the health of your retail location using hard data. Retailers, staff, or a third party combs through your store or pop-up shop to collect information on what's working and what's selling or what isn't.
    Quality Audit A Quality audit is the process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team.
    Project Audit A project audit is a formal review of a project, often intended to assess the extent to which project management standards are being upheld. Audits are generally carried out by a specially designated audit department, the Project Management Office, an approved management committee or an external auditor.