Which of the Following Is Not a Benefit Arising from Having

question 4

Multiple Choice

Which of the following is not a benefit arising from having the financial reports audited?

• A)Auditors suggest how controls can be improved.
• B)Auditors suggest how greater operating efficiencies may be achieved.
• C)Audits have a favourable effect on employee efficiency and honesty.
• D)Audits provide access to less favourable borrowing terms.

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Definitions:

Economic Efficiency

An arrangement where resources are managed to achieve the greatest output of goods and services.

Copper Products

Items or merchandise that are made from copper, including electrical wiring, plumbing materials, and decorative objects.

Pollutants

Substances that contaminate the environment, often resulting from industrial, agricultural, or other human activities, and can harm human health and natural ecosystems.

Declining Benefits

A situation where the additional satisfaction or value derived from using or consuming more of a product decreases.