Under Which Set of Auditing Standards Is the Auditor Required

question 43

Multiple Choice

Under which set of auditing standards is the auditor required to express an opinion on compliance with laws and regulations applicable to each major program?

• A) AICPA standards.
• B) GAO standards.
• C) OMB standards.
• D) All of the above.

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Definitions:

Government Regulations

The laws and rules established by governments to control or guide specific economic activities or markets.

Lending Standards

The set of criteria used by banks and financial institutions to determine the creditworthiness and eligibility of prospective borrowers.

Competitive Markets

Markets characterized by many buyers and sellers where no single participant can significantly influence the price of goods or services.

Externalities

Effects of a transaction or activity on third parties who are not directly involved, which can be either beneficial (positive externalities) or harmful (negative externalities).