Operational Audits Do Not Include Determining

question 115

Multiple Choice

Operational audits do not include determining

• A) Whether the entity is acquiring, practicing, and using resources economically and efficiently.
• B) Review of control systems to ensure compliance with company policies.
• C) The causes of inefficiencies or uneconomical practices.
• D) Whether the department's goals are aligned with the organization's goals.

---

Definitions:

Nominal Rate

The interest rate stated on a loan or financial product, not adjusted for inflation, representing the face value of the interest charged or earned.

Real Rate

The interest rate adjusted for inflation, representing the real cost of borrowing or the true return on investment, removing the inflationary impact.

Discounts

Reductions from the regular price of goods or services, often used as a strategy to increase demand or reward customers.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan remaining unpaid.