To Do an Audit, the Auditor Needs Information in a Verifiable

question 7

Essay

To do an audit, the auditor needs information in a verifiable form and some criteria by which to evaluate that 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:

Social Identity Theory

A psychological theory that examines how an individual’s self-concept is derived from perceived membership in social groups, influencing intergroup behavior.

Collective Behavior

Activities and behaviors of a group of people who are in a state of shared excitement or concern, often leading to unconventional behavior.

Ingroup

Represents a group to which a person belongs, feels a sense of identity with, and tends to favor over outgroups, which can influence perceptions and behaviors.

Outgroup

A group to which an individual does not belong and is often perceived as fundamentally different or opposed to the ingroup, leading to potential bias or prejudice.