In the normal course of perfor

In the normal course of performing their responsibilities,
auditors often conduct audits or reviews of the following:
1. Federal income tax returns of an officer of the corporation to determine whether he
or she has included all taxable income in his or her return.
2. Financial statements for use by stockholders when there is an internal audit staff.
3. A bond indenture agreement to make sure a company is following all requirements
of the contract.
4. Internal controls at a casino to ensure the casino is in compliance with federal and
state regulations.
5. Computer operations of a corporation to evaluate whether the computer center is
being operated as efficiently as possible.
6. Annual statements for the use of management.
7. Operations of the IRS to determine whether the internal revenue agents are using
their time efficiently in conducting audits.
8. Statements for bankers and other creditors when the client is too small to have an
audit staff.
9. Financial statements of a branch of the federal government to make sure that the
statements present fairly the actual disbursements made during a period of time.
10. Federal income tax returns of a corporation to determine whether the tax laws have
been followed.
11. The computer operations of a large corporation to evaluate whether the internal
controls are likely to prevent misstatements in accounting and operating data.
12. Disbursements of a branch of the federal government for a special research project
to determine whether the expenditures were consistent with the legislative bill that
authorized the project.
a. For these 12 examples, state the most likely type of auditor (CPA, GAO, IRS, or
internal) to perform each.
b. In each example, state the type of audit (financial statement audit, operational audit,
or compliance audit).

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