Which of the Following Best Describes the Relationship Between Generally

question 2

Multiple Choice

Which of the following best describes the relationship between generally accepted auditing standards (GAAS) and generally accepted government auditing standards (GAGAS) ?

• A)GAAS apply to independent CPA auditors; GAGAS apply to governmental auditors.
• B)Audits conducted in conformity with GAGAS may also require the auditor to conform to GAAS.
• C)Audits done in accordance with GAGAS must also be done in accordance with GAAS.
• D)Audits of state and local governments always required that the audit be conducted in accordance with both GAAS and GAGAS.

---

Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that producers are willing to sell at different prices.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Increase in Quantity

This refers to a situation where the amount of a product or service available or demanded in the market goes up.

Wage Rate

The amount of money paid per unit of time (hour, day, etc.) to compensate employees for their labor.