A Typical Objective of an Operational Audit Is to Determine

question 98

Multiple Choice

A typical objective of an operational audit is to determine whether an entity's

• A) internal control is adequately operating as designed.
• B) financial statements present fairly the results of operations.
• C) specific operating units are functioning efficiently and effectively.
• D) operational information is in accordance with generally accepted government auditing standards.

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Definitions:

Real Property

Land and anything permanently attached to it, such as buildings or structures, including the rights associated with ownership.

Lease

A contractual arrangement in which one party agrees to rent property owned by another party for a specified period of time in exchange for payment.

Eminent Domain

The right of a government to expropriate private property for public use, with compensation provided to the owner.

Bequeath

To leave personal property to someone through a will.