The Specific Performance Criteria to Be Used in an Operational

question 4

Multiple Choice

The specific performance criteria to be used in an operational audit are:

• A) selected from existing relevant policy statements, manuals, laws, or regulations, or are defined by the auditor for each operational audit.
• B) defined in Australian Accounting Standards.
• C) the same as the criteria used in evaluating the internal control structure in an engagement to report on the internal control structure over financial reporting.
• D) defined in Australian Auditing Standards.

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Definitions:

Term Deposit

A fixed-term investment held at a financial institution that pays interest at a specified rate and matures on a predetermined date.

Matures

The point in time when a financial instrument, such as a bond, CD, or loan, reaches its final due date and the principal is to be repaid.

Paying

The act of disbursing or settling a financial obligation.

Term Deposit

A type of bank deposit that is held at a financial institution for a fixed term or period of time, often yielding higher interest rates.