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An audit generally signifies an objective review and assessment of a company's financial statements, which an external third party usually conducts to ensure accuracy and adherence to a specified budget.

There are mainly three types of Audits:

CPA performing an audit on a laptop at D Arora CPA - Assurance


Internal Audits

Internal audits are conducted by a company's employees and are confidential, intended solely for the eyes of the organization's internal staff. These audits are crafted for the benefit of management and internal stakeholders, providing them with valuable insights. Additionally, management can leverage internal audits to identify and address any weaknesses or inefficiencies within the corporation proactively, prior to the involvement of external auditors in reviewing the financial statements.


External Audits
External Audits are performed by third parties and external organizations. They provide unbiased views that internal auditors might not be able to give.

These are utilized to work out any material misstatements or errors during a companyโ€™s financial statements. The main difference between internal and external auditors is that external auditors provide the right set of information that is unbiased and independent whereas internal auditors might not provide unbiased information because it is affected by the employee-employer relationship.


Government Audits
Government audits ensure the accuracy of financial statements prepared by external entities, confirming that they do not misstate a company's taxable income. Known as Yellow Book auditing, this process sets high-quality standards to align with integrity, professionalism, and competence. Like other forms of public operation examinations, it is an independent, methodical review of financial statements. Its goal is to evaluate and verify the financial information, culminating in a report that provides detailed explanations and comments on the audit findings.



In a review engagement, we actively engage in inquiry, analytical procedures, and discussions using original source documents. This process enables us to assess and report on the plausibility of the financial statements, though it involves fewer activities than an audit engagement.

Clients often need review engagements to meet banking covenants. At our company, we deliver this service with a blend of technical expertise, sharp business insight, and individualized attention. Our dedication to team continuity means we cultivate a deep understanding of your business, ensuring our service evolves to meet your unique requirements over time.
Animated CPA conducting an audit with a laptop and documents on desk - Assurance



In a compilation engagement, we assist management in presenting their financial information as financial statements. In this engagement, we do not provide assurance that the financial statements are free from material modifications to conform to the acceptable financial reporting framework. Our final report will neither express an opinion nor offer any assurance about the financial statements.

Companies typically require compilation engagements for internal use or income tax reporting.