Which of the Following Audit Activities Is Within the Scope

question 412

Multiple Choice

Which of the following audit activities is within the scope of assurance activities as stated in the International Professional Practices Framework?

• A) Review a make-or-buy decision and report a recommendation to management for approval.
• B) Participate in negotiations for a corporate acquisition.
• C) Assess financing alternatives for a new generator.
• D) Perform an evaluation of management's planning process.

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Definitions:

Profit

The financial gain achieved when the revenues obtained from business activities exceed the expenses, costs, and taxes associated with maintaining the activity.

Commodity

A primary item used in trading that is replaceable with other items of the same type.

Maximise

To increase to the greatest possible amount or degree.

Input

Resources or factors used in the production process to generate output, such as labor, capital, and materials.