Reviewing operating procedures and methods is a characteristic of:
A) an attestation engagement.
B) a compilation engagement.
C) a performance audit.
D) a compliance audit.

Question

Quizplus · Accepted Answer

Reviewing operating procedures and methods is a characteristic of a performance audit, which evaluates the economy, efficiency, and effectiveness of an organization's operations, including its internal control systems, and provides recommendations for improvement. Attestation engagements involve providing assurance on specific subject matters, such as financial statements or internal controls, while compilation engagements involve assisting in the preparation of financial statements without providing any assurance. Compliance audits focus on determining whether an entity is complying with specific laws, regulations or contractual provisions.

Reviewing Operating Procedures and Methods Is a Characteristic Of