Audits can be categorized into five types: (1) financial statement audits, (2) audits of internal control, (3) compliance audits, (4) operational audits, and (5) forensic audits. Required: For each of the following descriptions, indicate which type of audit (finan- cial statement audit, audit of internal control, compliance audit, opera- tional audit, or forensic audit) best characterizes the nature of the audit being conducted. Also indicate which type of auditor (external auditor, in- ternal auditor, government auditor, or forensic auditor) is likely to perform the audit engagement.

a. Evaluate the policies and procedures of the Food and Drug Administra- tion in terms of bringing new drugs to market.

b. Determine the fair presentation of Ajax Chemical's balance sheet, in- come statement, and statement of cash flows.

c. Review the payment procedures of the accounts payable department for a large manufacturer.

d. Examine the financial records of a division of a corporation to deter- mine if any accounting irregularities have occurred. LO587