Which of the Following Would Not Be a Concern of a Financial

question 3

Multiple Choice

Which of the following would not be a concern of a financial audit?

• A) Whether the Department of Environment Services actually spent the
• $150,000 its reports say it did
• B) Whether the 700 gallons of gasoline purchased by the Department were
• actually delivered
• C) Whether the 14 street cleaners employed by the Department could be
• replaced by a motorized sweeper to save $75,000 per year.
• D) Whether permit fees collected by the Department are remitted in their
• entirety to the city Treasurer.

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Definitions:

Clearinghouse Positions

The role of a clearinghouse in ensuring the settlement of transactions by acting as an intermediary between buyers and sellers in the financial markets.

Specified Delivery

A term used in futures contracts to denote the specific delivery specifications such as quality, quantity, and delivery location that must be met by the seller.

S&P 500 Index

A market-capitalization-weighted index of 500 of the largest publicly traded companies in the U.S., used as a benchmark for the overall stock market performance.

Futures Price

The predetermined price agreed upon in a futures contract for the delivery of an asset at a future date.