Within the chapter, three different types of audits were identified:

• Financial statement audit.

• Operational audit.

• Compliance audit.

Each type of audit is designed for a particular purpose and is selected depending on the specific objectives of report users.

Required: 

For each' of the following circumstances, indicate the type of audit required:
1. Management is interested in whether the purchasing department operates economically.
2. The state legislature is concerned that the requirements of a federal grant may have been violated.
3. A commercial bank will not approve a working capital loan without a report on whether the company's financial statements are presented fairly.
4. A state agency is not eligible for federal grants lacking a report on whether the agency's financial statements are presented fairly.
5. Management is interested in whether controls over highly sensitive inventory are reasonable and adequate.
6. Management is required to obtain a report indicating whether the objectives of a direct grant have been achieved.