Types Of Audits: Complete The Table Below By Filling In Each

Question

Types Of Auditscompletethe Table Below By Filling In Each Boxconductr Types of Audits Complete the table below by filling in each box. Conduct research and include citations. Directions Operational Audit Compliance Audit Financial Statement Audit Description of Audit Purpose of Audit Recipient of Audit and Audit Report Stakeholders (Who benefits from the audit) Example of Audit

Dr. Jack HW Helper · Accepted Answer

Introduction Audits are systematic examinations and evaluations of an organization’s operations, compliance, or financial statements. They serve to enhance transparency, ensure compliance with relevant laws and regulations, and verify the accuracy of financial data. Understanding different types of audits is essential for stakeholders to appreciate their purpose and benefits. This paper provides a comprehensive overview of three primary audit types: operational, compliance, and financial statement audits, by filling out a detailed table that describes each, their objectives, target audiences, and typical examples. Operational Audit Aspect Details Description of Audit An operational audit involves a thorough review of an organization's activities and processes to evaluate efficiency, effectiveness, and productivity. It assesses whether resources are being used optimally to achieve organizational goals (Louw, 2018). Purpose of Audit The primary goal is to identify areas for improvement, enhance operational efficiency, reduce waste, and optimize processes (Hussein & Zain, 2020). Recipient of Audit and Audit Report Management team and board of directors receive the findings to make informed decisions about operations. Stakeholders (Who benefits from the audit) Organizational managers, employees, shareholders, and ultimately, customers benefit through improved services and cost reductions. Example of Audit Review of supply chain processes to identify ways to reduce delays and costs in procurement and logistics. Compliance Audit Aspect Details Description of Audit A compliance audit assesses whether an organization adheres to external laws, regulations, policies, and contractual obligations (Arens et al., 2017). Purpose of Audit To ensure legal and regulatory requirements are met, reducing risk of penalties and legal actions (Porter & McLaughlin, 2020). Recipient of Audit and Audit Report Regulatory agencies, management, and stakeholders concerned with legal compl

Types Of Audits: Complete The Table Below By Filling In Each

Types Of Auditscompletethe Table Below By Filling In Each Boxconductr

Paper For Above instruction

Introduction

Operational Audit

Compliance Audit

Financial Statement Audit

Conclusion

References

Aspect	Details
Description of Audit	An operational audit involves a thorough review of an organization's activities and processes to evaluate efficiency, effectiveness, and productivity. It assesses whether resources are being used optimally to achieve organizational goals (Louw, 2018).
Purpose of Audit	The primary goal is to identify areas for improvement, enhance operational efficiency, reduce waste, and optimize processes (Hussein & Zain, 2020).
Recipient of Audit and Audit Report	Management team and board of directors receive the findings to make informed decisions about operations.
Stakeholders (Who benefits from the audit)	Organizational managers, employees, shareholders, and ultimately, customers benefit through improved services and cost reductions.
Example of Audit	Review of supply chain processes to identify ways to reduce delays and costs in procurement and logistics.

Aspect	Details
Description of Audit	A compliance audit assesses whether an organization adheres to external laws, regulations, policies, and contractual obligations (Arens et al., 2017).
Purpose of Audit	To ensure legal and regulatory requirements are met, reducing risk of penalties and legal actions (Porter & McLaughlin, 2020).
Recipient of Audit and Audit Report	Regulatory agencies, management, and stakeholders concerned with legal compliance.
Stakeholders (Who benefits from the audit)	Legal authorities, organization’s management, shareholders, and the public, as compliance mitigates legal and financial risks.
Example of Audit	Audit of a healthcare organization’s compliance with HIPAA regulations in patient data management.

Aspect	Details
Description of Audit	An audit of financial statements involves an independent examination of an organization’s financial reports to verify their accuracy and fairness in accordance with accounting standards (Sikka, 2018).
Purpose of Audit	To provide assurance to stakeholders that financial statements fairly present the company's financial position and performance (Mautz & Sharaf, 2016).
Recipient of Audit and Audit Report	Investors, creditors, regulators, and management rely on the audit report to make economic decisions.
Stakeholders (Who benefits from the audit)	Shareholders, investors, lenders, regulatory agencies, and management benefit from increased confidence in financial data integrity.
Example of Audit	Annual audit of a corporation’s financial statements to comply with SEC requirements and provide transparency to investors.