Chapter 21, Problem 35QRA

Steve Ankenbrandt, president of Beeb Corp., has been discussing the company’s internal operations with the presidents of several other multidivision companies. Ankenbrandt discovered that most of them have an internal audit staff. The activities of the staffs at other companies include financial audits, operational audits, and sometimes compliance audits.

Required:

Describe the meaning of the following terms as they relate to the internal auditing function:

1. a.      Financial auditing.
2. b.      Operational auditing.
3. c.       Compliance auditing.