Identification of Audits and Auditors. Audits may be characterized as (a) financial statement audits, (b) compliance audits, (c) economy and efficiency audits, and (d) programaudits. The work can be done by independent (external) auditors, internal auditors, or governmental auditors (including IRS auditors and federal bank examiners). Following is a listof the purpose or products of various audit engagements. [Students may need to refer toChapter 1.]a. Analyze proprietary schools’ spending to train students for oversupplied occupations.b. Determine the fair presentation in conformity with GAAP of an advertising agency’sfinancial statements.c. Study the Department of Defense’s expendable launch vehicle program.d. Determine costs of municipal garbage pickup services compared to comparable servicesubcontracted to a private business.e. Audit tax shelter partnership financing terms.f. Study a private aircraft manufacturer’s test pilot performance in reporting on the resultsof test flights.g. Periodically have U.S. comptroller of currency examine a national bank for solvency.h. Evaluate the promptness of materials inspection in a manufacturer’s receiving department.i. Report on the need for the states to consider reporting requirements for chemicaluse data.j. Render a public report on the assumptions and compilation of a revenue forecast bysports stadium/racetrack complex.Required:Prepare a three-column schedule showing (1) each of the engagements listed, (2) the typeof audit (financial statement, compliance, economy and efficiency, or program), and (3) thekind of auditors you would expect to be involved.
Identification of Audits and Auditors. Audits may be characterized as (a) financial statement audits, (b) compliance audits, (c) economy and efficiency audits, and (d) program
audits. The work can be done by independent (external) auditors, internal auditors, or governmental auditors (including IRS auditors and federal bank examiners). Following is a list
of the purpose or products of various audit engagements. [Students may need to refer to
Chapter 1.]
a. Analyze proprietary schools’ spending to train students for oversupplied occupations.
b. Determine the fair presentation in conformity with GAAP of an advertising agency’s
financial statements.
c. Study the Department of Defense’s expendable launch vehicle program.
d. Determine costs of municipal garbage pickup services compared to comparable service
subcontracted to a private business.
e. Audit tax shelter partnership financing terms.
f. Study a private aircraft manufacturer’s test pilot performance in reporting on the results
of test flights.
g. Periodically have U.S. comptroller of currency examine a national bank for solvency.
h. Evaluate the promptness of materials inspection in a manufacturer’s receiving department.
i. Report on the need for the states to consider reporting requirements for chemical
use data.
j. Render a public report on the assumptions and compilation of a revenue
sports stadium/racetrack complex.
Required:
Prepare a three-column schedule showing (1) each of the engagements listed, (2) the type
of audit (financial statement, compliance, economy and efficiency, or program), and (3) the
kind of auditors you would expect to be involved.
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