Auditing

ACCN 4110 Chapter one

Q 1-8:

An operational audit evaluates the efficiency and effectiveness of any part of an organization’s operating procedures and methods. Not only limited to accounting, they include the evaluation of organizational structure,, computer operations, production method, marketing, and any other area which the author is qualified. With so many different areas, it’s impossible to characteriza the conduct of a typical operational audit.

A compliance audit is conducted to determine whether the auditee is following specific procedures, rules, or regulations set by some higher authority. One of the difference is that the results of compliance audits are typically reported to management, rather than outside users.

A financial statement audit is conducted to determine whether the financial statements are stated in accordance with specified criteria. Also, the auditors need to have a understanding ofexternal relationships and operational environment and related business strategies.

The similarities of the three types of audits above is that they can be done by CPAs with an entity’s well-function and sustainable operation

Q 1-16

a. Assurance services are the comprehensive concept among the three . An attestation services is a type of assurance services, while an audit service is one of the attestation service.

b.

a. 1. An attestation service other than an audit service

2. An audit of historical financial statements

3. An attestation service other than an audit service

4. An assurance service that is not an attestation service

5. An assurance service that is not an attestation service

6. An attestation service other than an audit service

7. An attestation service other than an audit service

8. An assurance service that is not an attestation service

9. An attestation service other than an audit service

10. An assurance service that is not an attestation service

Q 1-21

1. IRS. Compliance audit

2. GAO. Operational audit...