Auditors Should Be Aware That the Investment Objectives of a Mutual

Auditors should be aware that the investment objectives of a mutual fund are usually based on a risk profile outlined in the fund prospectus. For example, aggressive growth funds may invest in highly volatile stock issues and a money market fund may invest in lo -risk money market instruments. Other funds have investment objectives based on the type or location of companies they invest in, such as:

A) Funds that invest only in non-profit organizations
B) Funds that invest only in environmentally conscious companies
C) Funds that invest only in U.S. government organizations
D) None of these