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:

Strategic Management

The process of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives and gain a competitive advantage.

Big Picture

An overall or comprehensive view or perspective of an issue or situation, considering all relevant factors and potential implications.

Strategy

A comprehensive plan created to achieve long-term goals within an organization, involving the allocation of resources to capitalize on opportunities or manage threats.

Top Level Management

The highest tier of executives and managers in a company, responsible for controlling and overseeing the entire organization.