Audits can be categorized into different types: Like; (1) financial statement audits, (2) compliance audits, (3) operational audits, and (4) forensic audits. Required: For each of the following descriptions, indicate which type of audit (financial statement audit, compliance audit, operational audit, or forensic audit) best characterizes the nature of the audit being conducted. Also indicate which type of auditor (external auditor, internal auditor, government auditor, or forensic auditor) is likely to perform the audit engagement.
Determine the fair presentation of ABC Chemical’s balance sheet, income statement, and statement of cash flows.
Review the payment procedures of the accounts payable department for a large manufacturer.
Examine the financial records of a division of a corporation to determine if any accounting irregularities have occurred.
Evaluate a company’s computer services department in terms of the efficient and effective use of corporate resources.
Audit the partnership tax return of a real estate development company.
Investigate the possibility of payroll fraud in a labor union pension fund.
Examine contractual agreements with bankers and other lenders to be sure the company is complying with legal requirements.