Ahmed is a CPA who is engaged to perform a variety of services to both audit and non-audit clients. Most of his work involves financial statements audits for publicly traded companies, other large companies, many small companies and even non-commercial organizations. However, some clients seek a variety of other non-audit services. These services differ widely in terms of the nature and purpose of providing the service. Differences also exist as to the amount of evidence used, costs incurred and accordingly the level of assurance provided on the reliability of information. Ahmed believes that auditing careers provide an excellent experience in risk assessment and management techniques. He has an opportunity for professional development and he also believes that his employment is interesting and meaningful. Working as a CPA, Ahmed has a wide range of opportunities allowing for personal growth. Although Ahmed, as a CPA, can perform any type of audit, some audit engagements are restricted to certain types of auditors other than the CPA. Following are a variety of services and audit engagements performed by different types of auditors. Based on your auditing background, you are required to help the auditor in analyzing each of the following separate individual cases related to different types of engagements by answering the following questions. Which of the following is not true about the major differences in the scope of audit responsibilities for CPAS, GAO auditors, IRS agents, and internal auditors? A. CPAS perform audits of financial statements of private and public companies prepared in accordance with U.S. or international auditing standards. B. GAO auditors perform compliance or operational audits in order to assure the government of the expenditure of public funds in accordance with its directives and the law. C. IRS agents perform compliance audits to enforce the federal tax laws as defined by the government interpreted by the courts, and regulated by the IRS, D. Internal auditors perform compliance or operational audits in order to assure management or the board of directors that controls and policies are properly and consistently developed, applied, and evaluated. Which of the following services performed by the auditor is not classified as a compliance audit? A. The auditor determines if the disbursements of the Ministry of Education are in accordance with the authorized expenditures. B. The auditor provides assurance that the amount of organic ingredients included in a company's products is consistent with USDA organic regulations. C. The auditor evaluates whether the credit approvals are granted to the customers in accordance with the allowable credit limits. D. None of the above. Which of the following services is not an example of an attestation service? A. The auditor certifies and reports on whether published annual report is prepared in accordance with Generally Accepted Accounting Principles. B. The auditor verifies the reliability of forecasted financial statements of a client's company in accordance with Generally Accepted Accounting Principles. C. The auditor compiles the financial statements of a client's company from its financial records in accordance with International Financial Reporting Standards. D. The auditor reviews whether financial statements of a client's company are prepared in accordance with the applicable accounting framework. Which of the following services performed by the auditor is not classified as an operational audit? A. The auditor evaluates the promptness of materials inspection in a manufacturer's receiving department. B. The auditor assesses whether the sales personnel conduct sales to customers according to the industry's prescribed quality standards. C. The auditor evaluates a company's payroll processing for economy according to the predetermined budget D. None of the above. Ahmed is a CPA who is engaged to perform a variety of services to both audit and non-audit clients. Most of his work involves financial statements audits for publicly traded companies, other large companies, many small companies and even non-commercial organizations. However, some clients seek a variety of other non-audit services. These services differ widely in terms of the nature and purpose of providing the service. Differences also exist as to the amount of evidence used, costs incurred and accordingly the level of assurance provided on the reliability of information. Ahmed believes that auditing careers provide an excellent experience in risk assessment and management techniques. He has an opportunity for professional development and he also believes that his employment is interesting and meaningful. Working as a CPA, Ahmed has a wide range of opportunities allowing for personal growth. Although Ahmed, as a CPA, can perform any type of audit, some audit engagements are restricted to certain types of auditors other than the CPA. Following are a variety of services and audit engagements performed by different types of auditors. Based on your auditing background, you are required to help the auditor in analyzing each of the following separate individual cases related to different types of engagements by answering the following questions. Which of the following is not true about the major differences in the scope of audit responsibilities for CPAS, GAO auditors, IRS agents, and internal auditors? A. CPAS perform audits of financial statements of private and public companies prepared in accordance with U.S. or international auditing standards. B. GAO auditors perform compliance or operational audits in order to assure the government of the expenditure of public funds in accordance with its directives and the law. C. IRS agents perform compliance audits to enforce the federal tax laws as defined by the government interpreted by the courts, and regulated by the IRS, D. Internal auditors perform compliance or operational audits in order to assure management or the board of directors that controls and policies are properly and consistently developed, applied, and evaluated. Which of the following services performed by the auditor is not classified as a compliance audit? A. The auditor determines if the disbursements of the Ministry of Education are in accordance with the authorized expenditures. B. The auditor provides assurance that the amount of organic ingredients included in a company's products is consistent with USDA organic regulations. C. The auditor evaluates whether the credit approvals are granted to the customers in accordance with the allowable credit limits. D. None of the above. Which of the following services is not an example of an attestation service? A. The auditor certifies and reports on whether published annual report is prepared in accordance with Generally Accepted Accounting Principles. B. The auditor verifies the reliability of forecasted financial statements of a client's company in accordance with Generally Accepted Accounting Principles. C. The auditor compiles the financial statements of a client's company from its financial records in accordance with International Financial Reporting Standards. D. The auditor reviews whether financial statements of a client's company are prepared in accordance with the applicable accounting framework. Which of the following services performed by the auditor is not classified as an operational audit? A. The auditor evaluates the promptness of materials inspection in a manufacturer's receiving department. B. The auditor assesses whether the sales personnel conduct sales to customers according to the industry's prescribed quality standards. C. The auditor evaluates a company's payroll processing for economy according to the predetermined budget D. None of the above