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:

Corporate Income Taxes

Taxes imposed on the income of corporations, which are calculated based on the profits these firms generate.

Property Taxes

Taxes levied by local governments based on the value of real estate property owned by individuals or businesses.

Payroll Taxes

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxation by the government.