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Define advantages and disadvantages of types of auditors

What are the advantages and disadvantages of the primary types of auditor?

There are several types of auditors, the most common types of auditors are:
? Certified public accounting firms
? Government Accountability office Auditors
? Internal Revenue Agents
? Internal auditors

Please explain the advantages and disadvantages of each one.

Solution Preview

An interesting question which goes to the motivation of the auditors and the conclusions expected as a result of the audit.

Certified public accounting firms perform audits for companies which are either required for reporting or for compliance. That means that SEC wants published financial statements for publicly traded companies, or lenders want financial statements for judge the quality of loans made to companies.

In either case, the CPA firms are to attest to the fairness of the presentation of the financial statements for all stakeholders whether owners, investors, lenders, analysts or prospective owners.

Advantages are that the public can obtain information which has been independently reviewed. A disadvantage is the cost to companies for compliance.

Government Accountability office Auditors perform audits for compliance. Compliance includes proper spending to match approved budgets. A large part of governmental auditing is for compliance with objectives. For example, if an agency funded a program to ...

Solution Summary

The 958 word solution lists and explains the types of audits and auditors together with the audit goals of each.

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