Beyond public accounting firms, there are a number of other opportunities to work as an audit professional. Three common examples would be working as an internal auditor, a governmental auditor, or a regulatory auditor. 

Required: 

For each of the following scenarios, please indicate whether it would be most appropriate to use an internal auditor, a governmental auditor, or a regulatory auditor: 

a. The Department of Defense for the United States plans to audit the cost accounting report for a contract signed with a key supplier. 

b. Bigdeal Corporation manufactures paper and paper products and is trying to decide whether to purchase Smalltek Company. Bigdeal wants to obtain a report on the operational efficiency and effectiveness of the Smalltek sales, production, and research and development departments.

c. The Federal Deposit Insurance Company (FDIC) plans to audit the collectability of loans at a bank that they insure. 

d. The board of directors would like an efficiency audit completed of its manufacturing plant operations. 

e. The City of New York would like an audit done of a major construction project to make sure that the taxpayer’s funds were used in an efficient manner. 

f. A federal bank examiner decides to audit a bank to determine whether it will remain solvent in the upcoming year.

g. The CEO of Franklin Corporation wants to hire an auditor to take responsibility for auditing the company’s compliance with environmental laws and regulations. 

h. The Internal Revenue Service (IRS) would like to audit the tax returns of a popular restaurant chain. 

i. The State of Ohio decided to audit the use of educational grants awarded to cities and towns in the state to make sure the funds were spent in accordance with the grant program.

j. The Department of the Interior for the United States plans to audit the use of funds spent by all National Parks.