Problem:
Several federal laws require external audits to protect the public. Should federal laws also require internal audits within a public corporation? Please provide an example.
How could federal laws be improved to regulate the quality and effectiveness of financial audits?
Professional auditing standards provide for an unqualified audit report with three standard paragraphs. Please describe those paragraphs. Which one is the most important and why?
In terms of professional standards, when is a disclaimer more appropriate than an audit opinion? Please explain the basis for your example.
Please define the terms in fact and appearance. What are the ethical implications and rationale for these auditing procedures?