Exercise 1: Examples of the Three types of Audit

Types of Audit Examples

Review the acquisitions of goods, including costs, to

Operational Audit determine if they are being purchased at the lowest
possible cost considering the quality needed

Verifying that workers’ compensation pay is being properly

Compliance Audit
reported

Audit the accuracy of financial statements and the

performance of a business during a set period of time
Financial Statement Audit
(requested by banks and financial regulatory bodies, such
as the Securities and Exchange Commission)
1: Examples of the Three types of Audit

Information Established Criteria Available Evidence

Goods purchasing records of the
company, Costs of good
purchasing activities
Company's records
Customer feedback on product quality
which the company manufactures,
Purchase prices of other suppliers
Provisions of insurance contract
Purchase invoices, Cost
records
Financial statements
and calculations by the
auditor

Documents, records and

Company's financial statement Accounting standards and principles outside sources of
evidence