As Part of a Preliminary Survey of the Purchasing Function

question 423

Multiple Choice

As part of a preliminary survey of the purchasing function, an internal auditor reads the department's policies and procedures manual and concludes that the manual describes the processing steps clearly and contains an appropriate internal control design. The next engagement objective is to evaluate the operating effectiveness of internal controls. Which procedure would fulfill this objective most effectively?

• A) Perform a design test.
• B) Perform a compliance test.
• C) Perform a systems test.
• D) Perform an efficiency test.

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Definitions:

Filial Piety

A virtue of respect for one's parents, elders, and ancestors, emphasized particularly in many Asian cultures.

Collective Societies

Societies characterized by a strong emphasis on communal bonds, interdependence, and prioritizing the needs of the group over individual desires.

Agricultural Societies

Communities whose economies are based on producing and maintaining crops and farmland.

Social Distance

The perceived or desired level of emotional or physical space between individuals or within social groups.