9/17/2017 Assignment Print View
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1. Award: 5.00 points
Chapter 01 Exercise 62 LO 1-6
Audits may be characterized as (a) financial statement audits, (b) compliance audits, (c) economy and efficiency audits, and (d) program results 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 purposes or products of various audit engagements:
Audit Engagement Type of audit Type of auditor
1. Analyze proprietary schools’ spending to train students for low-demand occupations. c or d Governmental (GAO) auditors
2. Determine whether an advertising agency’s financial statements are fairly presented in conformity
with GAAP. a Indepentent (external) auditors
3. Study the effectiveness of the Department of Defense’s expendable launch vehicle program. c or d Governmental (GAO) auditors
4. Compare costs of municipal garbage pickup services to comparable services subcontracted to a
private business. c Internal auditors
5. Investigate financing terms of tax shelter partnerships. b IRS auditors
6. Study a private aircraft manufacturer’s test pilot performance in reporting on the results of test
flights. b Internal auditors
7. Conduct periodic examinations by the U.S. Comptroller of Currency of a national bank for
solvency. b Federal bank examiners
8. Evaluate the promptness of materials inspection in a manufacturer’s receiving department. b or c Internal auditors
9. Report on the need for the states to consider reporting requirements for chemical use data. d Governmental (GAO) auditors
10. Render a public report on the assumptions and compilation of a revenue forecast by a sports
stadium/racetrack complex. a Indepentent (external) auditors
References
Matching Difficulty: 2 Medium
Chapter 01 Exercise 62
LO 1-6
Learning Objective: 01-06
Describe the audits and auditors
in governmental, internal, and
operational auditing.