Accounting and Finance Foundations

Unit 13

Accounting and Finance Foundations Unit 13: Auditing 989

Auditing

Chapter 30

Student Guide

Types of Auditors

Just as there are several types of audits, there are several types of auditors. Three of the most common

types of auditors are independent auditors, internal auditors, and Internal Revenue agent auditors.

Independent auditors are not associated in any way with the companies that they audit. Because they

have no relationship with these companies, the companies’ managers, or the companies’ owners, indepen-

dent auditors can be trusted to provide audit conclusions and opinions that are impartial and not biased.

Independent auditors conduct all three types of audits—financial statement audits, operational audits, and

compliance audits.

Internal auditors have responsibilities similar to independent auditors, although rather than being inde-

pendent, internal auditors are company employees who audit their own companies’ financial statements,

records, and operational processes. Unlike independent auditors’ reports, an internal auditor’s findings are

not often shared with people outside her/his company. Instead, s/he typically reports his/her audit findings

to the company’s board of directors and upper management.

A third type of auditor is an Internal Revenue agent auditor. As the name implies, these auditors work for

the Internal Revenue Service (IRS), which (as you’ll recall) is a U.S. federal agency that collects taxes and

enforces tax laws. Internal Revenue agent auditors’ primary responsibilities include auditing tax records

and determining if tax payers—individuals as well as companies—are compliant with tax regulations.

Lesson 30.1 Introduction to Auditing (cont’d)