Which of the following would not be a concern of a financial audit?
A) Whether the Department of Environment Services actually spent the
$150,000 its reports say it did
B) Whether the 700 gallons of gasoline purchased by the Department were
actually delivered
C) Whether the 14 street cleaners employed by the Department could be
replaced by a motorized sweeper to save $75,000 per year.
D) Whether permit fees collected by the Department are remitted in their
entirety to the city Treasurer.

Question

Quizplus · Accepted Answer

The concern of a financial audit would mainly focus on the accuracy and completeness of financial statements, transactions, and records. Cost-saving measures or operational decisions like whether to replace street cleaners with a motorized sweeper would not be the focus of a financial audit. A financial audit would focus on ensuring that financial transactions are properly recorded and reported, including the collection of permit fees and their proper remittance to the city Treasurer. The delivery of gasoline, while important, would primarily fall under the responsibility of an operational or logistics audit rather than a financial audit.

Which of the Following Would Not Be a Concern of a Financial