Chapter 26 Instructor's Guide

Chapter 26 Instructor's Guide - Chapter 26 Internal and...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 26 Internal and Governmental Financial Auditing and Operational Auditing In writing this chapter and in teaching it, we believe that it is essential not to get too detailed in identifying the specific steps in performing internal financial audits, governmental financial audits, or operational audits. We believe that all three types of audits require considerable analytical skill and creativity. We also believe that it is a disservice to operational auditing to spend a lot of time on the steps in performing an operational audit or writing a report. Students are likely to be more interested in applying the concepts learned in the chapter to the cases at the end of the chapter. Chapter Opening Vignette – “Good Auditing Often Results in Improved Cash Flows” This vignette is presented in the context of an internal auditor's work, but it could also relate to external auditors. It illustrates the principle that whenever a significant misstatement is found, there should also be a corresponding opportunity for significant improvement in the company's systems. In this case, the improvement results in a significant recovery of receivables and improved cash flows. Another view of this case is that it represents an example for the use of statistical methods. The specific methods that might be used can be discussed, as well as the problem of discussing statistical results with people who aren’t familiar with such technical subject matter. Internal Financial Auditing (page 836) Coverage of internal financial auditing is significant because many students may work as internal auditors sometime during their professional careers. We suggest
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/23/2010 for the course ACCOUNTING auditing taught by Professor Pro-abuel-ezz during the Spring '10 term at Cairo University.

Page1 / 5

Chapter 26 Instructor's Guide - Chapter 26 Internal and...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online