Internal, Operational, & Governmental Auditing

Terminology Financial Statement Auditing VS Internal Auditing Operational or Management Auditing Compliance Auditing Governmental Auditing

Financial Statement Vs Operational Auditing Operational –Select the auditee (Internal) –Plan the audit –Perform the audit –Report findings & recommendations to Management –Perform Follow-up Financial –Accept the client –Plan the audit –Perform the Audit –Report to Stockholders

Independence For Internal Auditing? Choice of reporting official Organizational level Salary Perquisites Acceptance, Implementation, & Follow-Up

Operational Auditing Effectiveness Efficiency

Governmental Auditing Compliance –Single Audit Act Internal Operational

Audit Report Format Operational –Background /Objective –Scope –Findings –Impact –Recommendations –Management Comments Financial –Introductory –Scope –Explanatory –Opinion –(Explanatory)