Chapt 1 LO7 Flashcards
identify primary types of auditors
what is a Government accountability office (GAO) auditor
An auditor working for the U. S. Government Accountability Office (GAO).
GAO officer do what kind of audit
financial, compliance, and operational
T/F Authority for government agency spending is a matter of law, so there is considerable emphasis on compliance with laws and regulations
T
what is an Internal REvenue agent (auditor) responbile for?
Responsible for enforcing federal tax laws major responsibility is to audit tax returns for compliance with tax laws
CPA auditors are also called? (2)
- external auditor 2. independent auditor
auditors who express audit opinions must be what?
licensed as CPA
how do internal auditor maintain independence,
often report to an audit committee of the board of directors, prssident, high executive officer
what do internal auditors do?
most commonly perform compliance auditing, but may also be involved in operational audits.
what are internal auditors?
employed by many organizations and function similarly to GAO auditors
what are certified public acccounting firms as auditors responsible for?
auditing financial statements of all publicly traded companies, most other large companies, smaller companies, and noncommercial organizations
what are the 4 primary types of auditors?
- Certified public accounting firms 2. Government accountability office auditors 3. Internal revenue agents 4. Internal auditors
T/F The complexity of federal tax laws, including individual income tax, corporate income tax, estate tax, and gift tax, among others, requires does not require considerable tax knowledge in addition to auditing skills
F
what is a major difference between internal auditors and cpa firms?
internal auditor lack of indpendence
what is the GAOs primary responiblity even though has many same responsibilites of CPA firm?
to perform the audit function for Congress.
IRS agents do what kind of audit
compliance
