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Which of the following is not an example of a compliance audir? O A
Which of the following is not an example of a compliance audir? O A. Is the computerized processing of payroll at the Indian subsidiary operating effectively and efficiently OB. Is the company paying the minimum wage rates required by states? OC. Determine if a company is meeting the financial covenants of a loan agreement with its lenders OD. The accounting personnel at the Chinese subsidiary following the financial statement preparation procedures prescribed in writing by the corporate control
Expert Solution
Compliance Audit is an independent evaluation of ensure that an organisation is following external laws, rules, and regulations or internal guidelines, such as corporate bylaws, controls, policies and procedures. Compliance audits may also determine if an organization is conforming to an agreement, such as when an entity accepts government or other funding.
Hence on the basis of above, we can conclude that Option A i.e. Is the computerized processing of payroll at the Indian subsidiary is operating effectively and efficiently, is not an example of Compliance Audit.
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