One requirement for each type of auditor is independence in some form from the entity being audited. External auditors are often referred to as independent auditors or CPAs. They can may practice as a sole proprietor or as a member of CPA firm. External auditor audit FS for publicly trade and private companies, partnerships, municipalities, individuals and other types of entity. Auditor who are employee of individual companies, partnerships, government agencies and other entities are called internal auditor IIA is the primary organization supporting internal auditors. The IIA has developed a set of standards to be followed by internal auditors and has established a certification program. IIA define internal auditing as an independent, objective assurance and consulting activity designed to add value and improve an organization's operation. Internal auditors often conduct financial, internal control, compliance, operational, and forensic audits within their organization. They may assist the external auditors with the annual FS audit. Government auditors are employed by federal, state and local agencies. They generally can be considered a subset of the broader category of internal auditors. GAO is under the direction of the comptroller general of the US and is responsible to congress. They also assist Congress by performing special audits, surveys, and investigations. The main activity of IRS auditors is examining and auditing the books and records of organizations and individuals to determine their federal tax liability. Forensic auditors are specially trained in detecting, investigating, and deterring fraud and white collar crime. ACFE is the primary organization supporting forensic auditors. It offers a certification program for individual wanting to be become CFEs. LO2
Four major types of audits:
1. Internal control audits
2. Compliance audits...
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