Purchasing

In this Evidence, we are going to talk about the main different types of Auditing and how they are related with the main idea of Internal Control over accounts payable, as well as how they are related with the payments of some debts.

After reading and explaining in class the Chapter 14 of Accounts Payable and others Liabilities, and Chapter 15 of Debt and Equity Capital, we are going to be able to present in the essay how they are in conjunction with this types of auditing and the control over them.

Also, we are going to talk about how chapters from 10 to 15 are involved explaining all the different types of audits we had seen in class during the hole semester.

ESSAY OF THE DIFFERENTS TYPES OF AUDITING

In this essay we are going to begin by making a little reference over what is the main subject we are talking about, which in this case, is the Financial Auditing.

As we have learned, financial auditing is the verification of the financial statements of a legal entity with a view to express an audit opinion. The audit opinion is intended to provide reasonable assurance, but not absolute assurance, that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework.

As we know there are 5 categories of audits which represent the must general and common ones; this categories are:

• Financial Audits address questions of accounting, recording, and reporting of financial transactions. Reviewing the adequacy of internal controls also falls within the scope of financial audits.

• Compliance Audits seek to determine if departments are adhering to federal, state, and University rules, regulations, policies, and procedures.

• Operational Audits examine the use of department/university resources to evaluate whether those resources are being utilized in the most efficient and effective way to fulfill the department's/University's mission and objectives.

• Investigative Audits are performed when appropriate. These audits focus on alleged violations of federal and state laws and of University policies and regulations.

• Information Systems (IS) Audits address the internal control environment of automated information processing systems and how these systems are used. IS audits typically evaluate system input, output and processing controls, backup and recovery plans, and system security, as well as computer facility reviews.

As we have seen during our process and classes in the classroom, the financial audit must include the main given points in the exam which are:

• Cash and Financial Investments

• Accounts Receivable, Notes Receivable and Revenue

• Inventories and Costs Of Goods

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