The Goal of Operational Auditing Is to Help Managers Discharge

question 101

True/False

The goal of operational auditing is to help managers discharge their management responsibilities and improve profitability.

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Definitions:

Parent Entity

A company that holds a controlling interest in another company, giving it control of its operations and policies.

Subsidiary

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Unrealised Profits

Profits that have been reported but not yet realized through cash or other payments.

Consolidation Adjustments

Adjustments made to a parent company's financial statements to eliminate the effects of intercompany transactions when consolidating subsidiaries.