An Operational Audit Is Most Likely to Address an Organization's

question 1

Multiple Choice

An operational audit is most likely to address an organization's:

• A)Effectiveness,efficiency and economy of operations.
• B)Financial reporting requirements.
• C)Laws and regulations.
• D)Management's objectives.

---

Definitions:

Rate Variance

The difference between the actual rate paid for something and the expected or standard rate, often used in budgeting and accounting.

Standard Machine-Hours

The predetermined amount of machine time expected to be used for a specific process or production activity, used for costing and efficiency measures.

Fixed Overhead

Fixed expenditures that are unaffected by production or sales volume, like rental fees, employee salaries, and insurance policies.

Volume Variance

A measure used to evaluate the difference between the expected and actual production volumes.