Which of the Following Examples Is a Compliance Audit in Relation

question 8

Multiple Choice

Which of the following examples is a compliance audit in relation to a government department?

• A)Reporting to the minister on the tendering process for the construction of the department's new office block.
• B)Reporting on the department's financial report to be presented to Parliament.
• C)Reporting to the minister as to whether the department has met the objectives set out in its mission statement.
• D)Reporting to the minister as to whether members of the department have followed the government travel guidelines.

---

Definitions:

Allowance Account

An account used to offset the total amount of accounts receivable due to the likelihood that some accounts will not be collected.

Bad Debts Expense

An expense account that represents the cost of credit sales that are considered to be uncollectible, reducing net income on the income statement.

POSSLQs

An acronym standing for "Persons of Opposite Sex Sharing Living Quarters," used to describe cohabitating couples who are not married.