what ONE answer correctly describe an audit
reviews of financial documents by an accounting form
a change in cost of living
a type of emploee survey
a type of law governing retirement
Reviews of financial documents by an accounting firm.
The answer that correctly describes an audit is: reviews of financial documents by an accounting firm.
The correct answer that describes an audit is: "Reviews of financial documents by an accounting firm."
To arrive at this answer, it is important to understand the meaning of each option and eliminate the ones that do not accurately depict an audit:
1. "Reviews of financial documents by an accounting firm": This option aligns with the definition of an audit, which involves a systematic examination of financial records, statements, and transactions to ensure accuracy, compliance, and reliability.
2. "A change in cost of living": This option does not relate to the concept of an audit, as it refers to fluctuations in the general level of prices for goods and services in an economy.
3. "A type of employee survey": While employee surveys are an important tool for organizations to gather feedback from their employees, they are not synonymous with an audit, which focuses on financial records rather than employee feedback.
4. "A type of law governing retirement": This option describes a law related to retirement, which is not directly relevant to the concept of an audit.
By understanding the definitions and eliminating the options that do not match the characteristics of an audit, we can conclude that the correct answer is "Reviews of financial documents by an accounting firm."