Question

LO 1-3, 6 1-36. For the purposes of this problem, assume the existence of five auditors: CPA, GAO, IRS, bank examiner, and internal auditor. Also assume that the work of these various auditors can be grouped into five classifications: audits of financial statements, compliance audits operational audits, accounting services, and consulting services. For each of the following topics, you are to state the type of auditor most probably involved. Also identify the topic with one of the above classes of work. You should organize your answer in a three-column format as follows: Column 1, the number of the topic; Column 2, the type of auditor involved; and Column 3, the class of work. 1. Financial statements of a small business to be submitted to a bank in support of a loan application. Financial statements of a large bank listed on the New York Stock Exchange to be distributed to stockholders. 2. 3. Review of the management directive stating the goals and tion's mail-handling department. 4. Review of costs and accomplishments of a military research program carried on within the air force to determine whether the program was cost-effective.

Answer 1

Following is the three column table :-

No. of topic	type of auditor involved	class of work
1	CPA	audits of financial statements
2	CPA	audits of financial statements
3	internal auditor	operational audit
4	GAO	operational audit
5	bank examiner	operational audit
6	internal auditor	consulting services
7	internal auditors	audit of financial statements
8	internal auditor	accounting services
9	IRS	compliance audit
10	GAO	compliance audit
11	GAO	compliance audit
12	CPA	accounting services