Explore BrainMass
Share

Define advantages and disadvantages of types of auditors

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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.

© BrainMass Inc. brainmass.com October 25, 2018, 1:35 am ad1c9bdddf
https://brainmass.com/business/auditing/define-advantages-and-disadvantages-of-types-of-auditors-268409

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.

$2.19
See Also This Related BrainMass Solution

type roles of audit and investigation in both the organization and professional services firms

Many corporations and government entities have an internal auditing function and a separate fraud investigation function either as a subunit of internal auditing or security or as a separate unit within the organization. In addition, many accounting and consulting firms have a forensic, investigation, and litigation support service.
1. In this discussion, you are encouraged to explore the roles and relationship of audit and forensic service, within an organization as well as within a professional service firm. Search for examples in industry and professional services firms through reviews of Web sites and the literature.
2. Discuss the type roles of audit and investigation in both the organization and professional services firms you identified. Explain the advantages and disadvantages of combing audit and investigation services.

View Full Posting Details