Which of the Following Is NOT a Necessary Condition for a Performance

question 30

Multiple Choice

Which of the following is NOT a necessary condition for a performance audit?

• A) The auditor must delineate specifically the activities and outcomes to be addressed.
• B) Entity management must have clearly defined operational objectives.
• C) The auditor must obtain an understanding of management controls relevant to the audit.
• D) There must be a schedule of disbursements related to the program.

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Definitions:

Accounts Payable

Money owed by a company to its creditors for goods or services that have been delivered or used, but not yet paid for.

Inventory

The total amount of goods and materials held by a company that are ready for sale or in the process of being produced.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share of the profits.

Cash Dividends

Cash distributions from a company's earnings to its shareholders as a reward.