One of the Key Differences Between a Financial Statement Audit

question 28

Multiple Choice

One of the key differences between a financial statement audit and a value for money audit is:

• A)In most cases VFM audits have mandates established through legislation or contracts.
• B)In a financial statement audit, the auditor has to use his or her professional judgment to redefine their broad mandate in specific terms with specific objectives.
• C)In a VFM audit, standards are defined by professions and associations.
• D)In a financial statement audit, sufficient appropriate evidence must be obtained to afford a reasonable basis to support the content of the auditor's report.

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Definitions:

Budgeting

The process of creating a plan to spend your money, allowing for the allocation of funds to various areas.

Actual Results

The real financial outcomes achieved by a business over a period, which can be compared against budgeted or forecasted figures for analysis.

Personnel Expenses

Personnel expenses are costs associated with employing staff, including wages, benefits, and taxes.

Client-visits

Client-visits refer to the number of times clients visit a business or service provider, often used to measure customer engagement or service utilization.