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1-20 (Objectives 1-6, 1-7) In the normal course of performing their responsibilities, auditors often conduct audits or reviews of the following: 1. Federal income tax

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1-20 (Objectives 1-6, 1-7) In the normal course of performing their responsibilities, auditors often conduct audits or reviews of the following: 1. Federal income tax returns of an officer of the corporation to determine whether he or she has included all taxable income in his or her return. 2. Federal income tax returns of a corporation to determine whether the tax laws have been followed 3. The computer operations of a large corporation to evaluate whether the internal controls are likely to prevent misstatements in accounting and operating data. 4. Financial statements for use by stockholders when there is an internal audit staff. 5. A bond indenture agreement to make sure a company is following all requirements of the contract. 6. Internal controls at a casino to ensure the casino is in compliance with federal and state regulations. 7. Computer operations of a corporation to evaluate whether the computer center is being operated as efficiently as possible. 8. Annual statements for the use of management 9. Operations of the IRS to determine whether the internal revenue agents are using their time efficiently in conducting audits. 10. Statements for bankers and other creditors when the client is too small to have an audit staff. 11. Financial statements of a branch of the federal government to make sure that the statements present fairly the actual disbursements made during a period of time. 12. Disbursements of a branch of the federal goverment for a special research project to determine whether the expenditures were consistent with the legislative bill that authorized the project. Required a. For these 12 examples, state the most likely type of auditor (CPA, GAO, IRS, or internal) to perform each. b. In each example, state the type of audit (financial statement audit, operational audit, or compliance audit)

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