Governments Often Engage One Auditor to Audit the Primary Government

question 29

True/False

Governments often engage one auditor to audit the primary government and other auditors to audit certain component units.In such cases the auditor of the primary government is permitted under generally accepted auditing standards (GAAS)to rely on the work of the other auditors.

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Definitions:

Job Evaluation System

A method used by organizations to determine the value of a job in relation to other jobs within the organization, often influencing pay and grade.

Factor Definition

The process of identifying and defining the elements or criteria that are important for evaluating or measuring something.

Compensable Factor

A criteria used in job evaluation to determine the value of a job and its appropriate compensation.

Pay Grade

A classification system that defines the range of pay rates for different levels of jobs within an organization based on the job's relative value or complexity.