After Performing Work in a Compliance Attestation Engagement and Finding

question 100

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:

Administrative Expenses

The costs associated with the general administration and management of a business, including salaries of executives, office supplies, and utilities.

Outsourcing

The business practice of hiring a party outside a company to perform services and create goods traditionally performed in-house by the company's own employees.

Phased-Retirement Program

A type of retirement plan that allows employees to gradually reduce their working hours as they transition to full retirement, often while retaining some benefits.

Early Retirement Incentives

Offers made to employees to encourage them to retire earlier than the norm, often as a strategy to downsize the workforce cost-effectively.