An independent CPA firm would use a company's historical financial statements and accounting standards when auditing financial statements. An IRS auditor would use tax records and tax laws when auditing tax returns. An internal auditor would use records of the computerized payroll system and efficiency/effectiveness standards when auditing the payroll processing system. Independent auditors are external and impartial, while internal auditors are internal but still impartial, and revenue agents enforce tax compliance. Financial statement audits examine financial records according to accounting standards, operational audits examine internal operations according to efficiency standards, and compliance audits examine adherence to regulations. Auditors verify accuracy while accountants prepare records, and auditors require expertise in evaluation and investigation beyond account preparation.

1. Assignment 1
1. Discuss the followings
a) To do an audit, it is necessary for information to be in a verifiable form and some
criteria by which the auditor can evaluate the information.
i. What information and criteria would an independent CPA firm use when
auditing a company’s historical financial statements?
ii. What information and criteria would an Internal Revenue Service auditor use
when auditing that same company’s tax return?
iii. What information and criteria would an internal auditor use when performing
an operational audit to evaluate whether the company’s computerized payroll
processing system is operating efficiently and effectively?
b) Discuss the similarities and differences between the roles of independent auditors,
OFAG auditors, internal revenue agents, and internal auditors.
Assignment 2
1. Discuss the followings:
a) The similarities and differences between financial statement audits, operational
audits, and compliance audits. Give an example of each type.
b) The differences and similarities between the roles of accountants and auditors.
What additional expertise must an auditor possess beyond that of an accountant?