Special audit definition
/What is a Special Audit?
A special audit is a tightly-defined audit that only looks at a specific area of an organization's activities. This type of audit may be initiated by a government agency, but could be authorized by any entity, or even internally.
Examples of Special Audits
Examples of special audits are noted below:
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Compensation audit . This audit investigates whether authorized compensation levels are actually being paid to employees.
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Compliance audit . This audit investigates whether an organization is adhering to the terms of a contract or certain rules and regulations.
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Construction audit . This audit addresses whether the costs incurred on a construction project were authorized and paid for.
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Controls audit . This audit investigates whether planned controls are actually being used, and how effective they are.
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Cost audit . This audit reviews the costs being incurred, usually by a functional area, to see if they are reasonable.
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Fraud audit . This audit is a detailed examination of the financial records of a business, with the intent of finding instances of fraud.
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Information systems audit . This audit reviews IT systems to see if they are functioning as planned, and whether designed controls are functioning as intended.
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Royalty audit . This audit addresses whether the correct royalties are being paid by the user of an asset to the royalty payee.
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Tax audit . This audit is conducted by a government entity, to ascertain whether the correct tax amounts have been paid.