In Operational Auditing, the Auditor Studies Business Operations and Makes

question 18

Multiple Choice

In operational auditing, the auditor studies business operations and makes recommendations about all of the following except

• A)Economic and efficient use of resources.
• B)Effective achievement of business objectives.
• C)The fairness of the financial statements.
• D)Compliance with company policies.

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.

Conservation

the understanding that certain properties of physical objects, such as volume or mass, remain the same despite changes in outward appearance.

Verbal Memory

The ability to remember and recall words, phrases, and narratives, an important aspect of human memory functioning.

Egocentrism

A cognitive trait where an individual has difficulty understanding that other people have their own perspectives and feelings that are different from their own.