Audit Objectives Set Forth by the United States Comptroller General

question 53

Essay

Audit objectives set forth by the United States Comptroller General in Government Auditing Standards (GAS)differ from the AICPA view (GAAS)as discussed in Chapter 12.Explain briefly how GAS audits might meet the information needs of taxpayers better than GAAS audits.Make clear what the two sets of objectives cover.

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Definitions:

Call Center

A centralized office used for receiving or transmitting a large volume of requests by telephone, often involving customer service or technical support.

Mixed Cost

An expense that has both fixed and variable components, changing in total with the level of activity but not in direct proportion.

Least-squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the differences between observed values and those predicted by a linear function.

High-low Method

A technique used in accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.