Question
Each of the following represents tasks that auditors frequently perform: 1 - Compilation of quarterly financial statements for a small business that does not have
Each of the following represents tasks that auditors frequently perform:
1- Compilation of quarterly financial statements for a small business that does not have any accounting personnel capable of preparing financial statements.
2- Review of tax return of corporate president to determine whether she has included all taxable income.
3- Review of the activities of the receiving department of a large manufacturing company, with special attention to the efficiency of the materials inspection.
4- Evaluation of a companys computer system to determine whether the computer is being used effectively.
5- Examination on a surprise basis of Topanga Bank. Emphasis placed on verification of cash and loans receivable and observation of the California banking code.
6- Examination of vacation records to determine whether employees followed company policy of two weeks paid vacation annually.
7- Audit of a small college to determine that the college had followed requirements of a bond indenture agreement.
8- Examination of financial statements for use by stockholders when there is an internal audit staff.
9- Audit of a German government agency to determine if the agency has followed policies of the German government.
10 -Audit of annual financial statements to be filed with the SEC.
Required:
For each of the above, identify the most likely type of auditor (independent, government, or internal) and the most likely type of audit (financial, compliance, or operational).
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