Operational Auditing Is the Review of an Organization for Efficiency

question 78

Essay

Operational auditing is the review of an organization for efficiency and effectiveness. Discuss what is meant by the terms "effectiveness" and "efficiency."

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Definitions:

IRS Method

Techniques and guidelines set by the Internal Revenue Service for calculating and filing taxes.

Depreciation

The method of allocating the cost of a tangible or physical asset over its useful life.

Royalties

Payments made to owners of intellectual property, like patents or copyrights, in exchange for usage rights.

Form 1099-MISC

A document used to report miscellaneous income such as payments made to independent contractors, rent, or awards.