Question

Audits may be characterized as (a) financial statement audits, (b) compliance audits, or (c) operational audits. The work can be done by (a) independent (external) auditors, (b) internal auditors, or (c) government auditors. Below is a list of several audit engagements. For each engagement indicate (a) the type of audit and (b) who would typically do the audit. Compare the cost of maintaining a fleet of delivery trucks with the option of using an independent delivery service.

Answer 1

Answer: COMPLIANCE AUDIT; GOVERNMENT

Explanation:

Compliance audits are audits conducting by Government body's or agencies in order to verify if an organization is effectively following the prescribed process and standards that is required or associated with the product or services they render.

Different fields have their own compliance auditors like ACCOUNTING/FINANCE, MANUFACTURING/FOOD PRODUCTION, LABORATORY, HEALTH,SAFETY AND ENVIRONMENT, HOSPITALS, audits can be ANNUAL,BI-ANNUAL, QUARTERLY, etc depending on the specific importance and Regulatory requirements.