Sample Thesis Paper
The audits are undertaken in the form of financial audits, attestation engagement, performance audits, and investigations. The guidelines for the audits are provided for the non profit organization by the AICPA and by the GAO for the government entities. The objective of carrying out the performance audits is to determine the efficiency of operations and accounting, their effectiveness and the economics of the business. They are generally geared towards identifying waste and highlighting it.
The investigation audits however are conducted for the purpose of determining any criminal activity like fraud or the abuse of investor funds and donations.
The problems that are often highlighted by the audits pertain to presence of inadequate evidence for asset valuation, asset ownership and management representation. The lack of due professional care taken by the business for keeping accounts, and the lack of proper GAAP implementation as well as the incomplete application of GAAP principles and procedures for accounting (Beasly et al, 2001). These are the problems that arise on the part of the firms being audited. Aside from this lack of professionalism and due diligence shown by the auditor can also give rise to audit problems that can be penalized.