Internal audits can generally be classified as
(1) Operational audits,
(2) Compliance audits, or
(3) Financial audits.

Required
a. For each of the following audit procedures, briefly indicate which of these three classifications best describes the nature of the audit being conducted.
b. Briefly indicate the type of auditor (public accounting firm, internal auditor, or governmental auditor) who would most likely perform each of the audits.
Audit Procedures Conducted
1. Evaluate the policies of the Department of Housing and Urban Development to determine their adequacy and whether they are effectively implemented.
2. Determine the presentation in conformity with GAAP of a municipality’s statement of operations for the year just ended.
3. Evaluate the procedures used by the service department of a telephone utility to respond to customer maintenance. Determine whether responses are timely and are correctly and completely billed.
4. Determine the costs of a municipality’s garbage pickup and disposal and compare these costs to those for similar services that might be obtained by contracting with a private contractor.
5. Determine whether all temporary investments by a company have been made in accordance with company policies and procedures and whether cash is handled economically and efficiently to maximize the benefits to the organization.
6. Conduct a tour of a manufacturing plant as a basis for determining the extent of waste and inefficiency. Study alternatives that might be utilized to cut down waste and inefficiency.
7. Review and test the security of the company’s computer system used for Internet processing.
8. Review the operations of an organization that has received a government grant to assist in training the jobless. The grant specifies criteria that must be utilized in using the grant money for job retraining, and so on. The audit is designed to determine whether such criteria are being utilized by the grantee organization.
9. Analyze the financial statements of a company that has been targeted for a takeover. Present your analysis to management and the board of directors.