Which of the following is NOT one of the three main activities involved in budgeting?

Auditing is identified as the correct answer because it is not one of the primary activities involved in the budgeting process. Budgeting fundamentally encompasses the activities of planning, controlling, and decision-making.

Planning involves setting financial goals and determining the best way to achieve them within a set timeframe. This is essential for aligning resources with strategic objectives, helping organizations to allocate their financial resources effectively.

Controlling refers to monitoring actual financial performance against the budgeted figures. This activity ensures that any deviations are addressed promptly, allowing management to take corrective actions to meet financial targets.

Decision-making leverages the information generated during the budgeting process to make informed choices about resource allocation, investment opportunities, and operational adjustments.

In contrast, while auditing may be related to financial oversight and accountability, it is not considered a direct activity within the budgeting cycle itself. It is typically a separate function that assesses the effectiveness and compliance of the budgeting process and financial reporting but does not play a foundational role in creating or managing the budget.