For each of the following situations explain whether and why having an independent review of the information provided—that is, an audit—would be useful. Who would be an appropriate person to conduct the audit?

a. A charity states that it spends 85% of money raised providing services to the community.

b. A used car dealer says that a car you are interested in is in excellent condition.

c. A store’s rent to the mall owner is $1,200 per month plus 5% of the amount of sales the store makes. For the year just ended, the store reports that its sales were

$250,000.

d. The selling price of a business is based on the most recent profit of the company.