Which of the Following Audits Can Be Regarded as Generally

question 35

Multiple Choice

Which of the following audits can be regarded as generally being a compliance audit?

• A)IRS agents' examinations of taxpayer returns
• B)GAO auditor's evaluation of the computer operations of governmental units
• C)An internal auditor's review of a company's payroll authorization procedures
• D)A CPA firm's audit of a public company

---

Definitions:

Surety

A person or entity that takes responsibility for another's performance of an undertaking, for example, the payment of a debt.

Guarantor

A guarantor is an individual or entity that promises to repay a loan or fulfill an obligation if the original debtor fails to do so.

Equitable Redemption

is a legal principle allowing a mortgagor in default the right to redeem or reclaim their property by paying off the entire mortgage debt before a foreclosure sale.

Lender

An individual, organization, or entity that provides funds to another with the expectation of repayment plus interest.