The Evidence Collection Stage of an Operational Audit Includes All

question 79

Multiple Choice

The evidence collection stage of an operational audit includes all the following activities except

• A)reviewing operational policies.
• B)establishing audit objectives.
• C)testing the accuracy of operating information.
• D)testing controls.

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Definitions:

Credit Instrument

The evidence of indebtedness.

Promissory Note

A promissory note is a financial instrument in which one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time or on demand of the payee.

Time Draft

A type of credit instrument in international trade where payment is deferred for a specified period after the buyer accepts the draft.

Banker's Acceptance

A short-term financial instrument issued by a company but guaranteed by a bank, commonly used in international trade.