15 June 2009
pls explain me what is a concurrent audit??? even explain me internal/external/statutory audit?? is IT audit u/s 44AB a statutory audit or external audit?? be detailed!!!
15 June 2009
Hi, Concurrent Audit refers to the Audit Process which happens parallelly with live transaction accounting/data entry..For eg. In many companies and banks every transaction is audited on the spot before release of payment etc. This is useful to prevent the mistakes at its inception..Something similar to POKAYOKE system of error proofing
Statutory Audit is an audit assignment carried out in pursuance of an enactment. Generally in case of Companies it means the Audit prescribe under sec.224 to 226. The audit under income tax is also pursuant to a statute but not defined as statutory audit per se.
Internal Audit is an audit process carried out from the management point of view and is more management oriented. These audits are carried out within the scope of management and are aimed at self correction by the management.
Any audit carried out by external persons not connected with the organization is external audit. This includes statutory audit also.
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