In an audit of a municipality the auditor is most important audit objective is
A)the municipality is in compliance with laws,regulations,and the municipality's policy and procedures.
B)the municipality's internal controls are operating effectively.
C)the municipality as sufficient documentation to support all purchases.
D)purchases made by the municipality have sufficient encumbrances.

Question

Quizplus · Accepted Answer

The most important audit objective for a municipality is to ensure that it is in compliance with laws, regulations, and its own policies and procedures. This is important to ensure that taxpayers' money is being used appropriately and effectively by the municipality. Internal controls, documentation, and encumbrances are also important, but ensuring compliance should be the top priority.

In an Audit of a Municipality the Auditor Is Most