There are several sources that the performance auditor can utilise in developing specific evaluation criteria. An area that would NOT be such a source is:
A) discussion and agreement between the management of the entity to be audited, the operational auditor and the entity or persons to whom the findings will be reported.
B) benchmarking, such as the data of comparable entities.
C) generally accepted accounting principles.
D) historical performance, such as results from prior periods.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) provide guidance on financial reporting, but they do not necessarily provide criteria for evaluating performance. The other options listed provide valuable sources for developing evaluation criteria. Discussions with management and other stakeholders can help identify relevant performance measures, benchmarking can provide insight into industry best practices, and historical performance can serve as a baseline for tracking progress over time.

There Are Several Sources That the Performance Auditor Can Utilise