Which of the following audits can be regarded as being solely "compliance" audits?
A)Canada Revenue Agency's examinations of the returns of taxpayers.
B)the Auditor General's evaluation of the computer operations of governmental units.
C)an internal auditor's review of his employer's payroll authorization procedures.
D)a public accounting firm's audit of the local school district.

Question

Quizplus · Accepted Answer

Canada Revenue Agency's examinations of taxpayers' returns are conducted solely to ensure that taxpayers have complied with tax laws, making it a compliance audit. The other options involve more than just compliance audits. The Auditor General evaluates computer operations of governmental units for effectiveness and efficiency, while an internal auditor's review of the employer's payroll authorization procedures assesses the procedures' accuracy and conformity to policies. Lastly, a public accounting firm's audit of the local school district involves evaluating financial statements and reporting on their compliance with generally accepted accounting principles.

Which of the Following Audits Can Be Regarded as Being