Audit Problem
Write a brief response, 30-90-words, for each question below.
• In your own words, define "Auditing."
• Discuss the importance of "Evidence" in auditing.
• Define "Independence" and "Objectivity" as they relate to auditing.
• Audits typically consist of three phases: Planning; Fieldwork; Reporting. Describe activities that accompany each phase.
• Distinguish between Assurance and Attestation Services.
• Describe the following types of Audits:
o Operational Audits
o Compliance Audits
o Financial Statement Audits
o Informational Technology Audits (may need to go outside the text to address this)
• Discuss the following types of Auditors:
o Auditors Working for CPA Firms
o Governmental Auditors (e.g. GAO, IRS, health inspectors)
o Internal Auditors.
• Identify the roles CPA firms play in society.
• Briefly explain Sarbanes-Oxley (SOX) and the role the Securities and Exchange Commission (SEC) plays in regulating audits.
• What is the role of the AICPA? The PCAOB? The Institute of Internal Auditors (IIA)?
• Summarize the 10 components of Generally Accepted Auditing Standards (GAAS)
• What are SAS, and for what are they used?
• True or False - CPA firms are required to engage in quality control efforts of its audits? Why or Why not?
• What is a Peer Review and how and when are they performed?
• Why does government often have different auditing and accounting standards?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.