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Chapter 28 covers auditing. A special type of audit is the A-133 audit, which the author outlines in detail and differentiates from a financial statement audit. Some findings need to be reported, and most auditor findings should be addressed by management because they represent something that is wrong with the financials of the organization.

Chapter 29 covers bookkeeping. As with accounting, there are different types of bookkeeping as well. The first of these is the simplest, cash-basis bookkeeping. Cash basis is a simple ledger that tracks cash transactions. Every transaction has an offsetting credit and debit. This allows every movement of cash to be understood, so that all expenses and sources of revenue are known. A trial balance is basically a cash-basis balance sheet.

A checkbook system is a fairly informal type of bookkeeping. The author argues that this system is familiar because everybody keeps a personal checkbook, but in 2014 that maybe needs to be updated, because today we need to learn these principals. The checkbook system is simply to record each disbursement and every time money comes in, simply noting where it came from or where it went. When this process becomes more formal and the information is tabulated at the end of the year, this becomes a bookkeeping system. Bookkeeping systems are still cash accounting, but a more formalized type than the checkbook system. The ethical leader will need to ensure that there are controls on cash disbursements, which is something that can be done with a bookkeeping system that records all transactions, especially all cash transactions and properly accounts for the sources and disbursements of cash.