An Organization Contracted a Third Party to Construct a New

Multiple Choice

An organization contracted a third party to construct a new facility that was estimated to cost $25 million. Which of the following is the most pertinent reason for the organization to audit the contractor's records?

A) The contract includes a right-to-audit clause.
B) The contractor will be paid on a cost-plus basis.
C) The estimated cost is high.
D) The contractor has subcontracted much of the work.