T1 INTRODUCTION TO AUDITING 1. Give a definition of auditing. Outline its major points. 2. Compare and contrast the following types of audits that can be performed in regards to the following aspects: (i) purpose, (ii) users of audit report, and (iii) nature of report. (a) Financial Statement Audit (b) Compliance Audit (c) Operational Audit 3. Explain the functions of the following types of auditors. How is the notion of independence different for each type of auditor? (a) External Auditor (b) Internal Auditor (c) Government Auditor 4. What is the meaning of attestation? What relevance does it have to the role of the auditor? 5. In most countries, only certain types of entities are required to have an audit, others may choose not to do so. Discuss the advantages of an audit. 6. Why does an auditor need to remain impartial, unbiased and independent?