Performance Audits of a Tax-Exempt Organization Are Undertaken to Assess

question 127

Multiple Choice

Performance audits of a tax-exempt organization are undertaken to assess which of the following?

• A) Internal controls as they relate to program management and reporting.
• B) Compliance with legal requirements and other program matters.
• C) Economy and efficiency.
• D) All of the above.

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Definitions:

Direct Competition

Occurs when businesses offer products or services that are exactly or very similar to each other, serving the same customers in the same market.

Substitute Competition

The competitive dynamic that occurs between products or services that can serve as replacements for each other.

Consumer Ethnocentrism

A belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services.

Environmental Scanning

The continuous process of gathering information about events and trends in the environment external to an organization to assist in strategic planning.