The Demand for Compliance Auditing in Generally Accepted Government Auditing

question 63

Multiple Choice

The demand for compliance auditing in generally accepted government auditing standards (GAGAS) terms is generated by

• A)acts discreditable to the profession.
• B)financial statement audits performed in accordance with generally accepted auditing standards.
• C)governmental managers' obligations to follow laws and regulations.
• D)public reports on government managers' following laws and regulations.

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Definitions:

Progressive Tax

A tax system where tax rates increase as the taxable income increases, placing a higher burden on wealthier individuals.

Tax Schedules

Tables or formulas that determine the amount of tax due based on various factors, such as income level, filing status, and allowable deductions.

Economy

An area or system in which economic activities such as production, distribution, and consumption of goods and services occur.

Proportional Tax

A taxation system where the tax rate remains constant regardless of the amount subject to taxation.