Audit is the examination of the books of accounts of an organisation. It gives an assurance that the books of account are correct and give a true and fair view of the state of affairs and the financial position of the organisation.
Every person carrying on business whose turnover exceeds Rs. 1 crore during the year and every person carrying on profession whose turnover exceeds Rs. 25 lacs in the previous year are required to get tax audit done.
Internal Audit is done to evaluate the internal controlsand improve the operational effectivenessof the company.
Management audit is an assessment of the policies and methods adopted by the management for administration of the organization.