Autonomy

LO1  One requirement for each type of auditor is independence in some form from the entity being audited.
 External auditors are often referred to as independent auditors or CPAs. They can may practice as a sole proprietor or as a member of CPA firm.
 External auditor audit FS for publicly trade and private companies, partnerships, municipalities, individuals and other types of entity.
 Auditor who are employee of individual companies, partnerships, government agencies and other entities are called internal auditor
 IIA is the primary organization supporting internal auditors. The IIA has developed a set of standards to be followed by internal auditors and has established a certification program.
 IIA define internal auditing as an independent, objective assurance and consulting activity designed to add value and improve an organization's operation.
 Internal auditors often conduct financial, internal control, compliance, operational, and forensic audits within their organization. They may assist the external auditors with the annual FS audit.
 Government auditors are employed by federal, state and local agencies. They generally can be considered a subset of the broader category of internal auditors.
 GAO is under the direction of the comptroller general of the US and is responsible to congress. They also assist Congress by performing special audits, surveys, and investigations.
 The main activity of IRS auditors is examining and auditing the books and records of organizations and individuals to determine their federal tax liability.
 Forensic auditors are specially trained in detecting, investigating, and deterring fraud and white collar crime.
 ACFE is the primary organization supporting forensic auditors. It offers a certification program for individual wanting to be become CFEs.
LO2

 Four major types of audits:
1. Internal control audits
2. Compliance audits