In an Audit of a Municipality the Auditor Is Most

question 38

Multiple Choice

In an audit of a municipality the auditor is most important audit objective is

• A)the municipality is in compliance with laws,regulations,and the municipality's policy and procedures.
• B)the municipality's internal controls are operating effectively.
• C)the municipality as sufficient documentation to support all purchases.
• D)purchases made by the municipality have sufficient encumbrances.

---

Definitions:

Payee

The party in a financial transaction to whom money is paid or is to be paid.

Interest Income

Earnings received from deposit accounts or investments that yield interest, such as savings accounts, bonds, or loans.

Accounts Receivable

An asset account that records amounts a company has a right to receive because it has provided goods or services on credit.

Nontrade Receivables

Amounts owed to a company that are not related to the sale of goods or services, such as tax refunds or loans to employees.