60.1K

Verified Solution

Link Copied!

Each of the following represents tasks that auditors frequently perform: 1- Compilation of quarterly financial statements for a small business that does not have any accounting personnel capable of preparing financial statements. 2- Review of tax return of corporate president to determine whether she has included all taxable income. 3- Review of the activities of the receiving department of a large manufacturing company, with special attention to the efficiency of the materials inspection. 4 Evaluation of a company's computer system to determine whether the computer is being used effectively. 5 Examination on a surprise basis of Topanga Bank. Emphasis placed on verification of cash and loans receivable and observation of the California banking code. 6 Examination of vacation records to determine whether employees followed company policy of two weeks' paid vacation annually. 7- Audit of a small college to determine that the college had followed requirements of a bond indenture agreement. 8. Examination of financial statements for use by stockholders when there is an internal audit staff. 9- Audit of a German government agency to determine if the agency has followed policies of the German government. 10 - Audit of annual financial statements to be filed with the SEC. Required: For each of the above, identify the most likely type of auditor (independent, government, or internal) and the most likely type of audit (financial, compliance, or operational)

Answer & Explanation Solved by verified expert

See Answer