Which of the following can be regarded as being solely 'compliance' audits?
A) Auditor-General's examinations of the returns of taxpayers
B) determining if bank requirements for loan continuation have been met
C) an internal auditor's review of his employer's noncurrent asset purchases
D) evaluating whether a computerised payroll system is operating effectively

Question

Quizplus · Accepted Answer

Compliance audits focus on whether a party is following rules, policies, or conditions set by external parties or agreements. In choice B, determining if bank requirements for loan continuation have been met is a clear example of a compliance audit, as it involves checking adherence to the bank's stipulated conditions.

Which of the Following Can Be Regarded as Being Solely