After Performing Work in a Compliance Attestation Engagement and Finding

question 104

Multiple Choice

After performing work in a compliance attestation engagement and finding that a governmental agency's managers failed to install and perform even the most elementary controls to ensure compliance with laws and regulations and,in fact,committed numerous violations,an auditor most likely would

• A)write an adverse report on actual compliance.
• B)write an unqualified report on actual compliance.
• C)write a report modified to disclose particular noncompliance events (specific violations of laws and regulations).
• D)write a disclaimer of opinion related to knowledge of noncompliance.

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Definitions:

Arbitrators

Neutral third parties chosen to settle disputes outside of court, whose decisions are typically binding.

Arbitration Case

A legal dispute that is resolved outside of court by an arbitrator, whose decision is typically binding on both parties.

Turnover

The rate at which employees leave a business and are replaced by new employees, which can affect organizational performance and continuity.

Unionized Settings

Work environments where a labor union represents the interests of the employees in negotiations with the employer regarding wages, benefits, and working conditions.