Internal and Gov't Audit, Fraud Examination Flashcards
Analyzing proprietary schools’ spending to train students for oversupplied occupations is an example of (blank) auditing
Economy and efficiency or program results, Governmental
Studying the DOD expendable launch vehicle program is an example of a (blank) audit done by a (blank) auditor
Economy and efficiency or program results, Governmental
Reporting on the need for states to consider chemical use reporting requirement data is an example of a (blank) audit done by a (blank) auditor
Economy and efficiency or program results, Governmental
Determining the fair presentation in conformity with GAAP of an advertising agency’s financial statements is an example of a (blank) audit done by a (blank) auditor
Financial statement, Independent CPA
Determining costs of municipal garbage pickup services compared to comparable service subcontracted to a private business is an example of a (blank) audit done by a (blank) auditor
Economy and efficiency, Internal auditors
Auditing a tax shelter partnership’s financing terms is an example of a (blank) audit done by a (blank) auditor
Compliance, IRS auditor
Studying private aircraft manufacturer’s test pilot performance in reporting on results of test flights is an example of a (blank) audit done by a (blank) auditor
Compliance, Internal Auditors
Periodically having U.S. comptroller of currency examine a national bank for solvency is an example of a (blank) audit done by a (blank) auditor
Compliance, Bank examiner
Evaluating the promptness of materials inspection in a manufacturer’s receiving department is an example of a (blank) audit done by a (blank) auditor
Compliance or economy and efficiency, Internal auditors
Rendering a public report on the assumptions and compilation of a revenue forecast by sports stadium complex is an example of a (blank) audit done by a (blank) auditor
Financial statement, Independent CPA
When auditing with “fraud awareness,” auditors should especially notice and follow up employee activities to ensure (blank and blank) are restricted to the cashier to improve accountability
Cash disbursement and bank statement reconciliation
An objective and systematic examination of a program against its objective criteria are known as (blank) audits
Performance
Define Internal Auditing
an independent, objective, assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve effectiveness of risk management, control, and governance processes.
The four audit objectives of an Internal Audit
- Recognizing and analyzing industry, business, and operational risks.
- Improving the economy and efficiency of the operations
- Ensuring compliance with management directives
- Serving as management’s representative
Financial, compliance, operational, governance, QC, environmental, and sustainability are all examples of (blank) audits
internal
To establish an independent and objective internal audit department as well as its scope, authorizations, and reporting requirements, organizations should develop an
audit charter
(Blank) are prepared by internal auditors for internal use by management to evaluate areas of concern or correct errors prior to an external audit
Financial audits
This type of audit provides managers assurance that the info they are using in the decision-making process is relevant and reliable
Financial audit
(Blank) address management’s concern regarding policies, procedures, laws and regulations
Compliance audits
Unfavorable internal audits should include what 5 items about their findings
- Condition – what was found
- Criteria – basis for determining that the condition was improper
- Cause – why did this happen?
- Effect – why is this bad?
- Recommendation – what do you think should be done about this?
The three types of governmental audits performed by the GAO are
Financial Statement Audits
Attestation Engagements
Performance Audits
Examples include: assessing extent goals have been achieved, relative cost and benefits or cost effectiveness of program performance, degree to which program produced intended results or unintended effects, etc.
Studying business operations for the purpose of recommendations regarding efficient use of resources, effective achievement of business objectives, and company policy compliance is a (blank) audit
Operational
(Blank) audits are designed to help provide management with high-quality information for implementation and execution of company strategy and decisions about leadership
Governance
The international organization that governs standards, continuing education, and general rules of conduct for internal auditors is the
IIA (Institute of Internal Auditors)