One of the Key Differences Between a Financial Statement Audit

question 45

Multiple Choice

One of the key differences between a financial statement audit and a value for money (VFM) audit is ________.

• A)in most cases,VFM audits have mandates established through legislation or contracts
• B)in a financial statement audit,the auditor has to use his or her professional judgment to redefine the broad mandate in specific terms with specific objectives
• C)in a VFM audit,standards are defined by professions and associations
• D)in a financial statement audit,sufficient appropriate evidence must be obtained to afford a reasonable basis to support the content of the auditor's report

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Definitions:

Statements

Financial records that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Non-negativity Constraints

are mathematical conditions in linear programming that require the variables to be zero or positive, never negative.

Feasible Region

In optimization problems, the set of all possible points that satisfy the problem's constraints.

Linear Programming

A mathematical technique used to maximize or minimize a linear objective function, subject to linear equality and linear inequality constraints.