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:

Allocate

The process of distributing resources or goods among various uses or individuals based on specific criteria, such as need or merit.

Marginal Change

A small incremental adjustment to a plan of action.

Incremental Adjustment

Small, gradual changes or modifications made in response to changing conditions or to improve a process or system.

Scarcity

A fundamental economic problem of having seemingly limitless human wants in a world of limited resources, leading to the necessity of making trade-offs.