Question

Governmental auditing can extend beyond audits of financial statements to include audits of an agency's efficient and economical use of resources and: multiple choice

O evaluation of the personal managerial skills shown by the agency's leaders.
O evaluations concerning the agency's achievements of the goals set by the legislature for the agency's activities.
O correspondence of the agency's performance with public opinion regarding the social worth of its mission.
O constitutionality of laws and regulations governing the agency.

Answer 1

Tje correct answer is option 2. Governmental auditing extends beyond financial audits to also evaluate an agency's achievement of legislative goals. This oversight is part of ensuring effective use of taxpayer dollars and aligns with the role of the Government Accountability Office (GAO).

Step-by-step explanation:

The student's question relates to the scope of governmental auditing, which can extend beyond traditional financial statement audits to include other aspects of public agency operations. The options provided are directed towards understanding the broader role of audits in assessing government agencies' performance and accountability. Considering the information provided, the governmental auditing process involves evaluating various facets of an agency's operations.

Given the context, the most appropriate choice is evaluations concerning the agency's achievements of the goals set by the legislature for the agency's activities. This option aligns with the Government Accountability Office (GAO)'s mandate to supervise and assess if taxpayer dollars are being used effectively and if the agencies are meeting their legislative objectives. This oversight includes evaluating the operational efficiency and effectiveness of the government agencies, which may not face the same competitive pressures as private-sector firms to improve efficiency or responsiveness due to their funding through tax dollars and lack of market competition.