An Independent CPA Is Conducting an Audit of an Entity

question 60

Multiple Choice

An independent CPA is conducting an audit of an entity that receives federal financial assistance and is subject to the GAO standards (GAGAS) . The auditor must design the audit to provide reasonable assurance of detecting which of the following?

• A) Immaterial misstatements, if they result from illegal acts.
• B) Noncompliance with entity policies and procedures.
• C) Noncompliance with the terms of contracts or grant agreements.
• D) All of the above.

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Definitions:

Persuasion

The act or process of influencing someone's beliefs, attitudes, or actions through argument, reasoning, or appeal.

Best Interest

A principle that emphasizes acting in the most beneficial manner for the well-being or advantage of a person or entity.

Persuasive Business Messages

Communications designed to influence the thoughts, feelings, or actions of others in a business context.

Effectiveness

The degree to which something achieves its intended outcome or goals, often used to evaluate strategies, tools, or processes.