2. Complete the requirements for Chapter 2, Problem 2-26 in Auditing and AssuranceServicesChapter 2:Problem 2-26. Audits can be categorized into five types: (1) financial statements audits, (2) audits of internal control, (3) compliance audits, (4) operational audits, and (5) forensic audits.For each of the following descriptions, indicate which type of audit (financial statement audit, audit of internal control, compliance audit, operational audit, or forensic audit) best characterizes the nature of the audit being conducted. Also indicate which type of auditor
(external auditor, internal auditor, government auditor, or forensic auditor) is likely to perform the audit engagement.a. Evaluate the policies and procedures of the Food and Drug Administration in terms of bringing new drugs to the market.a. Operational audit performed by government auditor.b. Determine the fair presentation of Ajax Chemical’s balance sheet, income statement, and statement of cash flows.b. Financial statement audit performed by an external auditor.c. Review the payment procedures of the accounts payable departments for a large manufacturer.c. The audit could be an internal control, compliance, and/or operational audit performed by an internal and/or external auditor.
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- Fall '08
- External auditor, government auditor