The demand for compliance auditing in generally accepted government auditing standards (GAGAS)terms is generated by
A)acts discreditable to the profession.
B)financial statement audits performed in accordance with generally accepted auditing standards.
C)governmental managers' obligations to follow laws and regulations.
D)public reports on government managers' following laws and regulations.

Question

Quizplus · Accepted Answer

The demand for compliance auditing in generally accepted government auditing standards (GAGAS) is generated by governmental managers' obligations to follow laws and regulations. Compliance auditing is a type of audit that focuses on determining whether an entity is following laws, regulations, and contractual agreements. In the case of government auditing, GAGAS requires auditors to perform compliance audits to provide assurance on the management's compliance with laws and regulations that may have a significant effect on the financial statements or the government's operations. Therefore, compliance auditing is driven by the government's legal and regulatory requirements.

The Demand for Compliance Auditing in Generally Accepted Government Auditing