Modern Auditing Comprehensive Questions

Comprehensive questions

Modern Auditing

ACC/491

Types of audits and auditors:

* Internal audit is a dynamic professions involved in helping organizations achieve their objectives. It is concerned with evaluating and improving the effectiveness of risk management, control and governance processes in an organization.

To do this, internal auditors work with management to systematically review systems and operations. These reviews (audits) are aimed at identifying how well risks are managed including whether the right processes are in place, and whether agreed procedures are being adhered to. Audits can also identify areas where efficiencies or innovations might be made. Internal audits are organized under an ongoing program of review and advisory activity this is based on the strategic needs of an organization.

In the course of their role, internal auditors work across all areas of an organization. In addition to core areas of financial control and IT, they review the tangible aspects of operations, such as an organization’s supply chain or IT systems; as well as more intangible aspects such as organizational culture and ethics. In fact, any system that has an impact on the effective operation of an organization may be included in internal audit’s scope.

Internal audit reports are presented to the CEO and board (via the audit committee) as they provide an independent viewpoint on the extent to which an organization is poised for success and advice on areas for improvement.

* Independent auditors analyze, review, and develop an opinion asserting the reliability and fairness of their clients’ financial statements, communicating this information to external users such as investors, creditors, and government organizations. In addition, independent auditors may perform a variety of auditing, tax, and consulting...