X423.2 Contrasting Issues: Chapters 1-5

Front 1

Internal v. External Auditing?

Back 1

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Front 2

Financial v. Operational v. Management Auditing?

Back 2

• All: An independent appraisal to examine to Financial, Operational, and Managerial activities, and report and recommend upon findings.

1.) Financial: Do these comply with G.A.A.P.?
• Accounting Records/Financial Statements
• Revenues, Expenses, Assets, Liabilities, OE

2.) Operational: Assets their Efficiency and Vulnerability to Fraud and Ability to achieve its Goals
• Activities of Production, Marketing, Transportation, Financial, and Personal

3.) Managerial: Are managerial structures effiecient?
• Issues of Economic Function, Organizational Structure, Performance, Policies, Executives (People)

Front 3

Internal Auditing Functions v. Goals v. Importance?

Back 3

1.) Functions
• Designing auditing systems, internal controls, examine financial, operational, and managerial issues
• Investigate fraud, Direct auditing department, Report and Recommend upon findings

2.) Goals
• Control Financial, Operational, and Managerial activities and Prevent/Detect Fraud
• Highlight both the positive and negative

3.) Importance
• Protects the financial resources, interests, wise-guides managerial decisions, enhances efficiency

Front 4

Authority v. Responsibility of the Internal Auditor

Back 4

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Front 5

Managerial Plans v. Programs?

Back 5

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Front 6

Managerial Plans v. Policies?

Back 6

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Front 7

Managerial Planning v. Control?

Back 7

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Front 8

Major v. Subsidiary Internal Controls?

Back 8

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Front 9

The Protective v. Constructive Dimension of Internal Control?

Back 9

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Front 10

Internal v. External Supporting Evidences?

Back 10

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Front 11

Random v. Interval Internal Auditing Statistical Samples?

Back 11

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Front 12

Interval v. Stratified Internal Auditing Statistical Samples?

Back 12

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Front 13

The Nature v. Scope of Internal Auditing Activities?

Back 13

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Front 14

Pros v. Cons of the Decentralization of the Internal Auditing Authority?

Back 14

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Front 15

Theoretical v. Practices v. O.J.B. Internal Auditing Training Activities?

Back 15

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Front 16

Internal Auditing Planning v. Controlling Functions?

Back 16

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Front 17

Internal Auditing Plans v. Procedures?

Back 17

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Front 18

Qualified v. Unqualified Internal Auditing Reporting?

Back 18

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Front 19

Internal Auditing Interviewing Functions v. Methods v. Techniques?

Back 19

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Front 20

Open-end v. Qualified Internal Auditing Questionnaires?

Back 20

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Front 21

Process v. Job-Order Production Systems?

Back 21

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Front 22

Centralization v. Decentralization of the Purchasing Activities?

Back 22

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Front 23

Internal Controls: Accounting?

Back 23

• Imposed by the virtue of the Financial and Cost Statements of an organization

Front 24

Internal Controls: Administrative?

Back 24

• Stems from the Corporate Policies, Plans, and Procedures

Front 25

Internal Controls: Organizational?

Back 25

• Stems from the Organizational Chart

Front 26

Internal Controls: Protective v. Constructive?

Back 26

1.) Protective: Aims to protect the assets and financial resources of an organization against:
• Errors • Fraud • Theft • Managerial abuse and malpractive • Financial Statement manipulation

2.) Constructive: Aims to improve the operating efficiency, productivity, and profitability by:
• Cost restructuring • Elimination of unprofitable products • Reorganization of corporate structure
• Mergers/Acquisitions • Integration