Which of the Following Would Be Considered a Performance Audit

question 5

Multiple Choice

Which of the following would be considered a performance audit under the Government Auditing Standards?

• A) An investigation into whether a purchasing department of a government was operated efficiently.
• B) An investigation into whether a social service agency of a state government improved the lives of its clients.
• C) Both of the above.
• D) Neither of the above.

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Definitions:

Rogue Agencies

Agencies that operate with disregard for laws or regulations, often pursuing their own agendas.

Bureaucratic Organizations

Organizations characterized by formal procedures, hierarchy, and a clear division of labor intended to increase efficiency.

Transnational Corporations

Large companies that operate and have assets or production facilities in more than one country, often exerting significant economic influence across national borders.

Virtual Goods

Items that are purchased in digital form, often within online communities or video games, which have no physical existence yet hold value for the purchaser.