A Typical Objective of an Operational Audit Is for the Auditor

question 11

Multiple Choice

A typical objective of an operational audit is for the auditor to

• A)determine whether the financial statements fairly present the entity's operations.
• B)evaluate the feasibility of attaining the entity's operational objectives.
• C)evaluate the effectiveness of an internal process.
• D)report on the entity's relative success in attaining profit maximization.

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Definitions:

Significance Level

The probability of rejecting the null hypothesis when it is actually true, often denoted as alpha (α) and typically set at 0.05 or 5%.

Null Hypotheses

A statement in statistical inference that proposes no significant difference or no effect, serving as the default assumption to be tested.

Alternative Hypothesis

A statement in hypothesis testing that proposes a significant difference or effect, contrasting the null hypothesis.

Average Amount

The sum of a collection of numbers divided by the count of numbers in the collection.