1. Write "TRUE" if the statement is correct and "FALSE" otherwise. 1) The work of auditing begins after the work of accounting ends. 2) Internal auditors do not satisfy independent in appearance. 3) One of the differences between accounting and auditing is that financial statements are the input for the former and the output for the latter one. 4) In the early periods, auditing was conducted through a public hearing and its objective was verification of true and fair view of an organization. 5) The development of auditing was not closely related to the development of accounting. II. Choose the correct answer for the following multiple choice questions. 6) Review of any part of an organization's operation procedures and method for the purpose of evaluating effectiveness and efficiency is; a. Compliance audit b. Operational audit c. Internal Audit d. Financial statement audit e. None of the above 7) Independent auditing can best be described as; a. A branch of accounting. b. A discipline that attests to the results of accounting and other functional operations and data. c. A professional activity that measures and communicates financial and business data. d. A regulatory function that prevents the issuance of improper financial information. e. None of the above
Answer (1)
Here are the answers to the provided statements and multiple-choice questions:
TRUE - The work of auditing generally begins after the work of accounting has ended, as auditing involves examining the financial statements produced by accounting to ensure their accuracy and compliance with relevant standards.
TRUE - Internal auditors often work within the organization, and while they try to maintain objectivity, they might not satisfy independent in appearance as external auditors do.
TRUE - One difference between accounting and auditing is indeed that accounting produces financial statements, which are the input for auditors who examine these statements.
FALSE - In early periods, auditing often focused more on fraud detection rather than just a true and fair view, and public hearings were not a standard component.
FALSE - The development of auditing is closely related to the development of accounting. As accounting grew more complex, the need for auditing increased to ensure the accuracy and reliability of financial information.
For the multiple-choice questions:
b. Operational audit - This type of audit reviews an organization's operations, procedures, and methods specifically to evaluate their effectiveness and efficiency.
b. A discipline that attests to the results of accounting and other functional operations and data - Independent auditing is primarily concerned with verifying the data and results produced by accounting and other business operations to ensure their validity and compliance with standards.
