Auditing Research Paper
January 9, 2012
Auditing in general is an organized process of accurately finding and assessing statements regarding financial records to determine the degree of accuracy between those statements and established criteria and communicate the results to interested users and or the public. Even though auditing and accounting have similarities, they can be distinguished. An accountant handles the daily financial operations for a business, while an auditor reviews the information provided by the accountants, usually on a quarterly or yearly basis. Another difference is an audit is usually performed by one or two people from an outside agency, whereas accounting for a company is usually complied of several different employees.
The three main types of audits include an operational audit, a compliance audit, and a financial statement audit. Arens, Beasley and Elder (2010) state that an operational audit evaluates the efficiency and effectiveness of any part of an organization’s operating procedures and methods.” A compliance audit is conducted to determine whether the auditee is following specific procedures, rules, or regulations set by some higher authority. A financial statement audit is conducted to determine whether the financial statements are stated in accordance with specified criteria. (pgs. 13-14) According to Woelfel (2012), “there are three main types of auditors: internal, governmental, and external” (para. 2). Woelfel (2012) says an internal auditor reviews the financial records and accounting systems, assess compliance with company policies, evaluate the efficiency of company operations, and assess the attainment of company goals. Governmental auditors include accountants employed by the U.S. General Accounting Office. The governmental accountants perform accounting and auditing tasks for the entire federal government. The independent auditor is not an employee of the organization being audited or an employee of the...
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American Institute of CPAs. (2011). Auditing Standards Board. Retrieved from
Arens, A., Beasley, M. & Elder, R. (2010). Auditing and Assurance Services an Integrated
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El_Moukammal, H. (2009). Auditors’ Code of Ethics. Retrieved from
International Federal of Accountants. (2011). About IAASB. Retrieved from
PCAOB (2012). About the PCAOB. Retrieved from http://pcaobus.org/About/Pages/default.aspx
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