The Primary Objective of Compliance Auditing Is to

question 71

Multiple Choice

The primary objective of compliance auditing is to

• A) Give an opinion on financial statements.
• B) Develop a basis for a report on internal control.
• C) Perform a study of effective and efficient use of resources.
• D) Determine whether auditee personnel are following laws, rules, regulations, and policies.

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Definitions:

Lean Manufacturing

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, focusing on adding value and reducing non-value-adding activities.

Eliminating Waste

The process of removing non-value-adding activities in a business to improve efficiency.

Inventory Levels

Inventory levels refer to the quantity of goods and materials on hand at any given time within a business, which is crucial for meeting customer demand without overstocking.

Lean Manufacturers

Companies that employ strategies to reduce waste and inefficiencies in their production process, maximizing customer value.