Question

Contracts must specify under what conditions audits can be performed and precisely who will be liable for the auditing expense.

a) True
b) False

Answer 1

Contracts must specify under what conditions audits can be performed and precisely who will be liable for the auditing expense.

Step-by-step explanation:

The statement, 'Contracts must specify under what conditions audits can be performed and precisely who will be liable for the auditing expense,' is true. When entering into a contract, it is essential to include provisions that address the possibility of audits and allocate responsibility for any associated expenses. These provisions provide clarity and protect the parties involved in the contract.