What Type of Audit Is Conducted to Provide Assurance About

question 122

Multiple Choice

What type of audit is conducted to provide assurance about various aspects of an organization's activities rather than the reliability of financial statements? a(an)

• A)compliance audit
• B)operational audit
• C)financial statement audit
• D)internal audit

Grasp the concepts of appraisal biases and how they impact performance ratings.

Recognize the importance of multiple source feedback in appraisals, especially the 360-degree feedback method.

Understand the purpose of management by objectives in performance appraisals.

Understand the various biases that can affect performance appraisals.

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Definitions:

Dividend Payout Ratio

A financial ratio that shows the portion of a company's earnings paid out to shareholders as dividends, expressed as a percentage of the company's total earnings.

Earnings per Share

A company's profit divided by its number of common outstanding shares.

Book Value per Share

This is the equity available to common shareholders divided by the number of outstanding shares, indicating the value per share if the company were liquidated.

Return on Total Assets

A financial ratio that measures the efficiency of a company's use of its assets in generating profit, calculated as net income divided by total assets.