A regulatory agency would use the external financial statements of a local government for which of the following purposes?
A)To assure that the entity is spending and receiving resources in accordance with laws, regulations or policies.
B)To determine how resources should be allocated.
C)To exercise general oversight responsibility.
D)To do all of the above.

Question

Quizplus · Accepted Answer

Regulatory agencies use external financial statements to ensure compliance with laws and regulations, to oversee financial activities, and to help in resource allocation decisions.

A Regulatory Agency Would Use the External Financial Statements of a Local