Please see attached file for questions. Topics in auditing.

Write a brief response, 30-50-words, for each question below. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. In your own words, define \"Auditing.\" Discuss the importance of \"Evidence\" in auditing. Define \"Independence\" and \"Objectivity\" as they relate to auditing. Audits typically consist of three phases: Planning; Fieldwork; Reporting. Describe activities that accompany each phase. Distinguish between Assurance and Attestation Services. Describe the following types of Audits: a. Operational Audits b. Compliance Audits c. Financial Statement Audits d. Informational Technology Audits (may need to go outside the text to address this) Discuss the following types of Auditors: a. Auditors Working for CPA Firms b. Governmental Auditors (e.g. GAO, IRS, health inspectors) c. Internal Auditors Identify the roles CPA firms play in society. Briefly explain Sarbanes-Oxley (SOX) and the role the Securities and Exchange Commission (SEC) plays in regulating audits. What is the role of the AICPA? The PCAOB? The Institute of Internal Auditors (IIA)? Summarize the 10 components of Generally Accepted Auditing Standards (GAAS) What are SAS, and for what are they used? True or False - CPA firms are required to engage in quality control efforts of its audits? Why or Why not? What is a Peer Review and how and when are they performed? Why does government often have different auditing and accounting standards? Write a brief response, 30-50-words, for each question below. 1. In your own words, define \"Auditing.\" Auditing refers to the systematic process of objectively acquiring and examining evidence with regard to assertions about economic events and actions to ascertain if they correspond with any relevant statutory obligation. 2. Discuss the importance of \"Evidence\" in auditing. Audit evidence is important as it helps the auditor in making an informed opinion about the financial statements. Evidence can also be used as guideline in carrying out future audits. 3. Define \"Independence\" and \"Objectivity\" as they relate to auditing. Independence refers to the freedom from conditions that threaten the ability of the internal audit activity to carry out internal audit responsibilities in an unbiased manner. Objectivity refers to an unbiased mental attitude that enables auditors to carry out engagements in such a way that they believe in their work product and that no quality compromises are made. 4. Audits typically consist of three phases: Planning; Fieldwork; Reporting. Describe activities that accompany each phase. Planning -here, the auditor notifies the client of the audit, discusses the scope and objectives of the examination with organization management, obtains information on important processes, and evaluates internal controls. Fieldwork- here, an audit program is created. It outlines the activities necessary to achieve the audit objectives. Reporting - here, an audit report is formulated. It include the result of the audit and recommendations for improvement 5. Distinguish between Assurance and Attestation Services. Assurance services are a broad category of services designed to improve the quality of decision making by improving confidence in the information on which decisions are made while attestation services are a subcategory of assurance services. They require independence and result in a report. 6. Describe the following types of Audits: a. Operational Audits- this is a systematic review of effectiveness, and efficiency of operations b. Compliance Audits- refers to a comprehensive review of an company's adherence to regulatory guidelines c. Financial Statement Audits- refers to audits performed to attest to the fairness, accuracy, and reliability of financial data. d. Informational Technology Audits (may need to go outside the text to address this) - this refers to is an audit of a firm's IT systems, management, operations and related processes. 7. Discuss the following types of Auditors: a. Auditors Working for CPA Firms - these kind of auditors perform auditing services for commercial companies b. Governmental Auditors (e.g. GAO, IRS, health inspectors)- these auditors audit government financial data c. Internal Auditors - an auditor who is an employee of the company who inspects the accounting records and practices of the company. 8. Identify the roles CPA firms play in society. CPA Firms provide audit services, take part in bookkeeping services, tax services and management consulting services 9. Briefly explain Sarbanes-Oxley (SOX) and the role the Securities and Exchange Commission (SEC) plays in regulating audits. Sarbanes-Oxley Act was created due to all the fraud and scandals that were occurring. It was there to help control and regulate corporate accounting practice. The Securities and Exchange Commission provides information to investors that help them in making their investment decisions. 10. What is the role of the AICPA? The PCAOB? The Institute of Internal Auditors (IIA)? The PCAOB provides oversight for the auditors of public companies AICPA provide particular requirements for CPAs, conduct research, and publish materials on different subjects related to accounting. The Institute of Internal Auditors provides leadership for the global profession of internal auditing 11. Summarize the 10 components of Generally Accepted Auditing Standards (GAAS) An easy way to summarize the 10 components can be broken down into three sections: i. The General Standards - The audit is to be performed by individuals that have ii. adequate technical training and proficiency as auditors. Standards of fieldwork- an audit is to be adequately planned and assistants are to be iii. properly supervised. Standards of reporting- The report should state whether the financial statements are presented in accordance with generally accepted accounting principles 12. What are SAS, and for what are they used? SAS are considered authoritative literature and should be followed by members .they provide guidance for those completing the audit. They are given two classification number- An SAS and an UN-C number. 13. True or False - CPA firms are required to engage in quality control efforts of its audits? Why or Why not? True This is because part of an audit of historical financial statements often consists of identifying operational problems and making recommendations that could beneath the audit 14. What is a Peer Review and how and when are they performed? A peer Review is the review by CPAs of another firm to determine and report if the firm being reviewed has quality control policies and procedures and follows them. 15. Why does government often have different auditing and accounting standards? The difference occurs due to the difference between the nature of government operations and those of general business. For example way the government generates revenue is different from the way other businesses generate