A Typical Objective of an Operational Audit Is for the Auditor

question 44

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)Make recommendations for improving performance.
• D)Report on the entity's relative success in attaining profit maximization.

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Definitions:

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Structured Problem

A problem defined by clear parameters, with known processes and potential solutions, allowing for systematic analysis and resolution.

Unstructured Problem

A problem that lacks a clear path to the solution, often requiring creative thinking or innovative approaches.

Programmed Problem-solving Methods

Structured and often automated approaches or algorithms designed to address specific types of problems in a systematic way.