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Part $1$

In the normal course of performing their$$ responsibilities, auditors often conduct audits or reviews of the items listed below.

Requirements

a$.$ For the $12$ examples, state the most likely type of auditor$($CPA$,$ GAO,$$ IRS, or$$ internal$)$ to perform each.

b$.$ In each$$ example, state the type of audit$($financial statement$$ audit, operational$$ audit, or compliance$$ audit$).$

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Part $1$

Start with example $1.$ through $5.$ and$($a$)$ identify the most likely type of auditor$($CPA$,$ GAO,$$ IRS, or$$ internal$)$ to perform$$ each, and$($b$)$ identify the type of audit$($financial statement$$ audit, operational$$ audit, or compliance$$ audit$).$

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Most likely type of auditor

Type of audit

$1.$

The computer operations of a large corporation to evaluate whether the internal controls are likely to prevent misstatements in accounting and operating data.

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$2.$

Financial statements for use by stockholders when there is an internal audit staff.

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$3.$

A bond indenture agreement to make sure a company is following all requirements of the contract.

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$4.$

Internal controls at a casino to ensure the casino is in compliance with federal and state regulations.

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$5.$

Computer operations of a corporation to evaluate whether the computer center is being operated as efficiently as possible.