Arkansas Pharmacy Laws and Regulations Practice Exam

How far back may an audit be conducted?

1. 12 months

2. 18 months

3. 24 months

4. 36 months

The correct answer is: 24 months

An audit can typically be conducted for up to 24 months. This is because most businesses and organizations follow the generally accepted accounting principles (GAAP), which recommends keeping records for a minimum of two years. Option A (12 months) and B (18 months) do not fall within this recommendation, making them incorrect choices. Option D (36 months) may seem like a logical choice, but the recommended timeframe of two years is considered standard and sufficient for auditing purposes. Therefore, option C (24 months) is the best and most accurate choice.