Question

You have recently been appointed as an audit assistant for MKZ Auditing LLC, a popular auditing firm based in Al Ain. Your line manager spoke to you two weeks ago to inform you that you have been assigned with another senior auditing staff to undertake a visit and audit a client called SMC Hotels LLC.

Your line manager has tasked you to liaise with the senior auditing staff to prepare a presentation to be delivered to the senior management on how you propose to investigate and plan the audit of SMC Hotels LLC.

Required

Mention any 4 types of audit and discuss which type is applicable to SMC Hotels LLC ( In Your own Words)

Answer 1

There are different types of audit that can be done by an auditor. A few of them are :

1. Financial Audit

2. Compliance audit

3. Information Systems Audit.

4. Operational Audit.

From above, operational audit can be conducted at SMC Hotels LLC. Operational audits are generally carried by almost all hotels around the globe. In an operational audit, operations of an entity is reviewed to improve the productivity, efficiency and effectiveness of the operations of the entity. It is the part of internal audit to enhance the professional service of the business.