Following types of audits are contemplated under company law:
Statutory audit: Conducted in order to report the state of a company’s finances and accounts to the Indian government. Such audits are performed by qualified Chartered Accountants who are working as external and independent parties
Internal audit: Conducted at the bequest of internal management in order to check the health of a company’s finances and analyze the operational efficiency of the organization. However, internal audit is also mandatory for company satisfying the prescribed threshold