PCG

ACC 442
8/21/2021

Question 1- 7
Audit services are a part of attestation services. Auditing services assist companies with constructing
compliant financial statements and communication with banks, investors/shareholders, and other
financial partners that their finances are in order. There three types of auditing services provided which
are internal audit, external service, and internal revenue service. Auditing is the accumulation and
evaluation of evidence about information to determine and report on the degree of correspondence
between the information and established criteria. Internal audit services are provided by internal
auditors appointed by the company itself. External audit services are provided by auditors outside of the
company. The internal revenue services are done by tax auditors who verify the returns and tax
accuracy by taxpayer by examination of records.

Example of audit service is the financial statement audits, review and evaluate the efficiency of the
manufacturing process, review the invoices and other supporting vouchers to the accounting book,
services related to reviewing the financial statements according to the standards required.

Assurance service is an independent service provided by a professional to improve the quality of

information for decision makers. The service is useful as it provides an unbiased and professional
opinion on the information.

Example of assurance service is the Consumers Union, a nonprofit organization, tests a wide variety of
products used by consumers and reports their evaluations of the quality of the products tested in
Consumer Reports.

Attestation service is a type of assurance service in which the CPA firm issues a report about a subject
matter or assertion that is made by the information provider.

Example of attestation service is auditing of historical financial statement.

Question 1-19
A. The following are the main advantages and disadvantages of the four types of auditing careers:

Auditing Career Advantages Disadvantages

Internal Revenue Service (IRS) 1. In-depth training in
agent individual, corporate,
gift and other taxes.
2. Practical training with
advanced selection
techniques.
CPA 1. In-depth training in
financial statement
audit and operational
auditing.
2. Practical training in
different industries with
a chance to develop an
expertise for one
industry.
GAO Auditor 1. Opportunity to work in
operational auditing.
2. Practical training with
advances auditing
techniques.
Internal auditor 1. Opportunity to work in
all the segments of a
business.
2. Practical exposure in
compliance, operational
as well as financial
auditing.
1. Limited experience
related to taxes.
2. No experience in
auditing of financial
statements.
1. Limited experience
related to business as
compared to an internal
auditor.
2. No experience in
operational auditing.
1. Limited experience
related to different
business.
2. Affected by bureaucracy
of the federal
government.
1. Limited experience in
taxation.
2. Experience in only one
industry.

B. The best early career choice for the senior who is interested in becoming a certified fraud
examiner is to start working as a n internal auditor. The job requirements of an internal auditor
would complement the responsibilities performed by a certified fraud examiner.
C. The other auditing careers available to those who are qualified are
1. Working with several branches of the federal government.
2. Working for various state as well as local governments.