Financial Audits Generally Are Conducted Annually

question 24

Multiple Choice

Financial audits generally are conducted annually. Performance audits generally are conducted

• A) Every year.
• B) Every two years.
• C) Every five years.
• D) On an irregular basis.

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Definitions:

Artificial Time Periods

Divisions of time into periods for accounting purposes that may not correspond to actual calendar periods.

Economic Entity

A unit in the economy that is capable of engaging in financial activities, such as a person, corporation, or government entity.

GAAP

stands for Generally Accepted Accounting Principles, which are the standard framework of guidelines for financial accounting used in any given jurisdiction.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guide how financial transactions and events should be reported.