Which of the Following Types of Audits Is Most Likely

question 6

Multiple Choice

Which of the following types of audits is most likely to be conducted for the purpose of identifying areas for cost savings?

• A)Financial statement audits
• B)Operational audits
• C)Regulatory audits
• D)Compliance audits

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Definitions:

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with a particular responsibility, such as in a trustee-beneficiary or agent-principal relationship.

Personal Interests

Individual preferences, hobbies, or activities that a person finds enjoyable or important.

Apparent Authority

A situation in which a person appears to have the authorization to act on behalf of another entity, leading third parties to reasonably believe such authority exists.

Knowingly

Acting with awareness or deliberate intention, often referenced in legal contexts to imply a person had knowledge or should have had knowledge of the implications of their actions.