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The audit type appropriate before any large investment is committed is

  • A.the investment-grade audit
  • B.the walk-through audit
  • C.the preliminary audit
  • D.the statutory audit

Answer: A

A lender or a board asked for capital wants savings established by measurement, risks quantified and the economics defensible, which only the most thorough grade of audit provides. A walk-through estimate is not evidence on which money is committed.

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