In Reporting Performance Audit Findings, Why Does an Auditor Evaluate

question 7

Multiple Choice

In reporting performance audit findings, why does an auditor evaluate evidence against criteria?

• A)To ensure reasonable criteria have been established.
• B)To develop conclusions relative to the audit objectives.
• C)To develop the audit scope.
• D)To determine risk.

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Definitions:

Domestic Industries

Industries within a country’s borders that produce goods and services for the local market.

Foreign Competition

The economic competition that domestic companies face from abroad in both local and international markets.

Dodd-Frank Act

A comprehensive financial reform legislation enacted in 2010 in the United States, aimed at reducing risks in the financial system and protecting consumers.

Antifraud Provisions

Regulatory measures designed to protect investors by preventing fraudulent trading practices and securities fraud.