Submitted by: Submitted by jetscreamer33
Views: 89
Words: 522
Pages: 3
Category: Business and Industry
Date Submitted: 12/27/2014 08:13 PM
TYPES OF AUDITS
Operational
* PURPOSE: To evaluate whether operating procedures are efficient and effective
* USERS: Management of the organization
* NATURE: Highly non-standard; often subjective
* FREQUENCY:
* PAs: Frequently
* AGs: Frequently
* CRA: Never
* Internal: Frequently
Compliance
* PURPOSE: To determine whether the client is following specific procedures set by higher authority
* USERS: Authority setting down procedures, internal or external
* NATURE: Highly non-standard; often subjective
* FREQUENCY:
* PAs: Occasionally
* AGs: Frequently
* CRA: Always
* Internal: Frequently
Financial Statements
* PURPOSE: To determine whether the overall financial statements are presented in accordance with an acceptable financial reporting framework
* USERS: Different groups for different purposes—many outside entities
* NATURE: Highly standardized
* FREQUENCY:
* PAs: Almost always
* AGs: Occasionally
* CRA: Never
* Internal: Never
TYPE OF AUDITORS – SCOPE
* PAs: Perform audits in accordance with auditing standards of published financial statements prepared in accordance with GAAP or IFRS
* OAG: Perform compliance or operational audits in order to assure the Parliament of the expenditure of public funds in accordance with its directives and the law
* CRA: Perform compliance audits to enforce the federal tax laws as defined by Parliament, interpreted by the courts, and regulated by the Income Tax Act
* Internal: Perform compliance/operational audits to assure management or BOD that controls and policies are properly and consistently developed, applied and evaluated
No report < Review Report < Audit = lower information risk
Annual Loan Cost = Cost of PA Services + Annual Interest
An audit provides many benefits (detects errors/fraud, suggestions for improvement, etc.)
Knowledge of e-commerce...