You have recently joined a publicly traded financial institution - People's Bank - as a junior accountant. During a regular Monday morning meeting the Chief Accountant announced that the Independent Registered Public Accounting Firm Auditors-Are-Us will be coming to perform a compliance audit. One of your colleagues whispered, "But they were here last month."

REQUIREMENT:

PROVIDE TO YOUR COLLEAGUE A DETAILED EXPLANATION OF THE VARIOUS TYPES OF AUDITS

THE BANK IS SUBJECT TO.

YOU ARE ENCOURAGED TO USE APPROPRIATE AUDITING TERMS AND PHRASES IN YOUR RESPONSE.