•Internal Audit
°An audit of internal systems and/or procedures. An
internal audit is most often performed by
people how directly work for the company. Many companies hire outside firms (see third party below) to perform the
audits.
•External
Audit
°Second Party - Customer Audits
•Customer audits are those where a customer (or a customer
representative) performs the audit. A customer audit is
not ‘objective’ because the customer is
intimately involved with your company (the supplier to the customer). This involvement can BIAS the
audit.
°‘Third Party’ Audits
•Third party audits are like those you think of when you
think of bank audits. Banks (and other
financial institutions) must hire a company or person to audit their books and procedures. The company
or person hired to do the audit cannot have an
‘interest’ in the business it is auditing. This
is known as an ‘Independent Audit’. Your registrar audit is a third party audit.