Types of Audit

One of the signs of modern business is the integration of advanced technologies into daily routine automation. And with the innovative corporations we see a steady trend – top managers are more and more interested in conducting independent audits. So, they control the financial statement, privacy check, cybersecurity audits, and overall state of affairs.

The main classification of auditing activities is as follows.

Internal audit, as an element of management control, is an opportunity for an enterprise to check the operability of business processes, the management system, compliance with the established accounting procedure, and the reliability of the internal control system.

Independent (external) audit is carried out exclusively by third-party audit organizations on the basis of contracts. The initiator of the audit is a business entity.

Tax audit – the performance of a special audit task by an audit organization to review the accounting and tax reports of an economic entity in order to express an opinion on the degree of reliability and compliance in all material aspects with the norms established by law, the procedure for the formation, recording, and payment of taxes and other payments by an economic entity in budgets of various levels and extra-budgetary funds;

Operational audit is a check of the economic system, business operations, estimates, methods of functioning of the economic system, target programs in order to assess their productivity and efficiency;

Audit for compliance with legal requirements – an analysis of a specific financial or economic activity to determine its compliance with the prescribed conditions, rules, or laws, it is also necessary to find out whether the legal documents used in the work area in the interests of the company;

Price audit – is an independent expert assessment of the economic, technical, and technological characteristics of a product, work, service, or investment project for the validity of the established price.

We are used to financial audits, but we often forget about the importance of independent software audits. How often do you order custom development? If your in-house development team design some apps, or you are a client, who from time to time outsourcing IT software creation, an independent software audit is a must-have procedure for you.

The long-term practice of auditing large portals, banking, and industrial systems shows that a formal approach to information security turns out to be extremely vulnerable to hacker threats. An audit of a company’s information security enables management and owners to assess the real situation in the IT sector, detect vulnerabilities and directions, and get an idea of ​​the necessary measures to improve security. Its results, subject to professional execution, provide an opportunity to build an effective protection system that copes with its tasks, meets the specifics of a particular business, and does not require increased costs.

What needs to be kept under control?

  •         network reconnaissance and search for vulnerabilities;
  •         check for vulnerability to cracking;
  •         checking for personal data leakage;
  •         checking for hacker attacks in order to spread malware;
  •         modeling attacks to keep safety the access to critical information systems.

In modern conditions, regular auditing is almost a mandatory measure for most companies. Independent verification does not require significant costs, especially in comparison to business risks and official fines, issued by the regulators. So, these expenditures are fully paid off, since a regular audit gives confidence in a high level of protection of the company from information threats. The main thing is to choose a reliable contractor for the audit.

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