To Do an Audit, It Is Necessary for There to Be

question 52

Essay

To do an audit, it is necessary for there to be information in a verifiable form and some criteria by which the auditor can evaluate the information. (A) What information and criteria would an independent public accounting firm use when auditing a company's financial statements? (B) What information and criteria would a taxation auditor use when auditing that same company's tax return? (C) What information and criteria would an internal auditor use when performing a performance audit to evaluate whether the company's computerised payroll processing system is operating efficiently and effectively?

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Definitions:

Widespread

Something that is found in many places or affects a large number of people.

Ultimate Software

A technology company known for developing cloud-based human capital management (HCM) software solutions.

Human Resources

An organizational department responsible for managing employee-related functions, such as hiring, training, and benefits.

Recession

A significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.