What Is the Main Concern of Performance Auditing

question 10

Multiple Choice

What is the main concern of performance auditing?

• A)Compliance with relevant laws and regulations.
• B)Probity.
• C)Financial report attest auditing.
• D)Efficiency, economy and effectiveness.

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Definitions:

Plowback Ratio

The proportion of earnings that a company retains and reinvests into its operations rather than distributing as dividends.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders in dividends, expressed as a percentage.

Operating Capacity

The maximum output or production level that a facility or business can achieve under normal circumstances.

Internal Growth Rate

The maximum growth rate a firm can achieve without external financing while maintaining a stable financial structure.