A Reason for a Nonprofit Organization to Be Audited Is

question 68

Multiple Choice

A reason for a nonprofit organization to be audited is to

• A) comply with the laws requiring them to be audited.
• B) meet requirements of lenders or funding sources.
• C) have a professional accountant perform their bookkeeping.
• D) ensure that their financial statements do not contain errors.

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Definitions:

Social Regulation

Rules and standards imposed by governments to protect public health, safety, and welfare, including environmental and workplace regulations.

Critics

Individuals or groups who express judgments or evaluations, often negative, about various subjects, including art, literature, policies, or societal norms.

Government

An organized group or system responsible for governing a structured community, typically a country.

Efficiency Loss

The decrease in economic efficiency that occurs when a market outcome does not allocate resources in the most economically beneficial way, often due to externalities or market failures.