An audit to determine whether the auditee is following specific procedures or rules set down by some higher authority is classified as:
A) a production audit.
B) an operational audit.
C) an audit of financial statements.
D) a compliance audit.

Question

Quizplus · Accepted Answer

A compliance audit focuses on ensuring that the auditee is following specific procedures or rules set down by some higher authority, such as laws, regulations, or policies. A production audit focuses on the manufacturing process, an operational audit focuses on organizational procedures and effectiveness, and an audit of financial statements focuses on the accuracy and fairness of financial reporting.

An Audit to Determine Whether the Auditee Is Following Specific