An organization contracted a third party to construct a new facility that was estimated to cost $25 million. Which of the following is the most pertinent reason for the organization to audit the contractor's records?

Question

Quizplus · Accepted Answer

Auditing the contractor's records is most pertinent when the contractor is paid on a cost-plus basis to ensure that the costs claimed are legitimate and reasonable.

An Organization Contracted a Third Party to Construct a New