When Performing an Operational Audit, the Internal Audit Team Must

question 96

Multiple Choice

When performing an operational audit, the internal audit team must first determine that

• A) a financial audit has been performed by an independent auditor.
• B) a financial audit has been performed by an internal auditor.
• C) a review was performed by either an independent or an internal auditor.
• D) specific criteria are developed to define effectiveness.

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Definitions:

Circular 230

Regulations promulgated by the United States Department of the Treasury governing practice before the Internal Revenue Service by attorneys, CPAs, and other professionals.

Regressive Tax

A tax rate that decreases as the taxable amount increases, placing a higher burden on lower-income earners.

Appellate Courts

Courts responsible for hearing appeals against legal decisions made by lower courts, reviewing cases for errors in application of the law.

Trial Courts

Courts of original jurisdiction where cases are tried, evidence is presented, and judgments are made, subject to appeal.