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SSC Audit Tax Finance P-II QUESTION #6217
Question 1
Which of the following represents a 'Compliance Audit' objective?
  • Evaluating the efficiency of the payroll computer system
  • Expressing an opinion on the truth and fairness of financial statements
  • Analyzing the replacement cost of fixed assets for a merger
  • Determining if the entity is following specific rules set by a higher authority✔️
Correct Answer Explanation
Compliance audits are designed specifically to determine if an entity is following procedures, rules, or regulations set by a higher authority.