The primary objective of compliance auditing is to
A) Give an opinion on financial statements.
B) Develop a basis for a report on internal control.
C) Perform a study of effective and efficient use of resources.
D) Determine whether auditee personnel are following laws, rules, regulations, and policies.

Question

Quizplus · Accepted Answer

Compliance auditing involves determining whether auditee personnel are following laws, rules, regulations, and policies. This includes assessing whether the auditee is complying with legal requirements and internal policies related to financial reporting, ethics, and operations. Compliance auditing does not involve giving an opinion on financial statements or studying the use of resources, although it may provide a basis for reporting on internal control.

The Primary Objective of Compliance Auditing Is to