Which of the Following Audits Can Be Regarded as Being

question 38

Multiple Choice

Which of the following audits can be regarded as being solely "compliance" audits?

• A)Canada Revenue Agency's examinations of the returns of taxpayers.
• B)the Auditor General's evaluation of the computer operations of governmental units.
• C)an internal auditor's review of his employer's payroll authorization procedures.
• D)a public accounting firm's audit of the local school district.

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Definitions:

Budget

An estimate of income and expenditure for a set period of time.

Fixed Expense

Costs that do not vary in amount and are paid on a regular basis, such as rent or mortgage payments.

Recurring Expense

Ongoing financial obligations that individuals or businesses regularly pay, such as rent, utilities, or subscription services.

Fixed Expense

Costs that do not change from period to period, such as rent or mortgage payments, providing predictability in budgeting.