Dear Friend, Following are the different types of audit prescribed under VAT provisions: 1. Selective Audit/Departmental Audit: This type of audit is performed to check whether the information supplied by the assessee is correct or not. Scientific basis is used to select the dealers.The Department conduct the audit in the premises of the assessee and examine various returns,accounts and other information available with them.If any tax-evasion is detected during audit,then the previous accounts of the assessee can also be checked.The Department can also cross-check the information received during audit from the records of other agencies such as income-tax department,excise department,etc. 2. Compulsory Audit/External Audit/Independent Professional Audit: As Department Audit works on scientific basis,it is very difficult to avoid tax evasion.Thus, to check tax evasion to a great extent,this type of audit is conducted.It is prescribed by some States and is carried out only by Chartered Accountants or Cost Accountants.