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:

Unsecured Loan

A loan that is issued and supported only by the borrower's creditworthiness, without the need for collateral.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used but not yet paid for.

Self-Recognition

Awareness of self, usually manifested by the individual’s display of self-directed behavior on viewing her own reflection. For example, a child capable of self-recognition will touch a spot of rouge on her nose when she looks in a mirror rather than touching the mirror.