An audit designed to provide reasonable assurance of detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a material and direct effect on the financial statements would be called a(n)
A. performance audit.
B. management audit.
C. operational audit.
D. compliance audit.
Answer:D
An audit designed to provide reasonable assurance of detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a material and direct effect on the financial statements would be called a(n)
A. performance audit. B. management audit. C. operational audit. D. compliance audit.