An Internal Auditor Is Researching the Laws and Regulations Related

question 179

Multiple Choice

An internal auditor is researching the laws and regulations related to a city's grant program. Which of the following procedures is least relevant to this task?

• A) Making inquiries of the audit committee about the nature of the grants.
• B) Reviewing prior-year workpapers and asking officials if there have been any changes.
• C) Reviewing applicable grant agreements.
• D) Discussing the matter with the city's chief financial officer, legal counsel, or grant administrators.

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Definitions:

Arbitrage

The practice of buying and selling a commodity or financial instrument in different markets to profit from differing prices for the same asset.

Profit-Maximizing Strategy

A plan or approach designed by a firm to ensure highest possible profit from its operations, taking into account costs and market demand.

Monopoly Pricing

A pricing strategy used by a monopoly where the company can set prices with little to no competition, often above the market rate.

Antitrust Laws

Regulations designed to promote competition and prevent monopolies by restricting certain business practices deemed unfair or anti-competitive.