The Essential Parts of the Definition Of Operational Auditing Do

question 72

Multiple Choice

The essential parts of the definition of operational auditing do not include:

• A) evaluating an organization's operations.
• B) effectiveness, efficiency, and economy of operations.
• C) recommendations for improvement.
• D) systematic process.
• E) reporting to stockholders.

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Definitions:

Quantitative Threshold

A specified numerical limit or benchmark that must be met or exceeded, often used in contexts like financial regulation or performance measurement.

Reportable

Refers to information or actions that must be disclosed to regulatory authorities or in financial statements according to legal or regulatory requirements.

Combined Revenues

The total revenue generated by a group of companies or divisions consolidated into a single figure.

Commercial Substance

A situation where the risk, timing, or amount of the entity's future cash flows changes as a result of a financial transaction.