Which of the Following Statements Is Incorrect About GAO Standards

question 7

Multiple Choice

Which of the following statements is incorrect about GAO standards pertaining to performance audits?

• A)The GAO mandates that programs be audited annually by accounting trained professionals
• B)Performance audits are normally carried out by internal audit departments
• C)Performance audits focus on specific programs
• D)The GAO does not specify when and how often a program, must be audited

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Definitions:

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces, as opposed to fixed costs which remain constant regardless of production volume.

Contribution Rate

The percentage or amount that is contributed to a retirement or investment plan, usually on a regular basis, by an employer, employee, or both.

Monthly Sales

The total revenue generated from sales activities within a calendar month.

Graphical Approach

A method of solving problems or illustrating concepts by using diagrams, charts, or graphs.