One Type of Audit That Is Concerned with the Economical

question 24

Multiple Choice

One type of audit that is concerned with the economical and efficient use of resources and the accomplishment of established goals and objectives is known as a(n) ________ audit.

• A) financial
• B) information systems
• C) internal control
• D) operational or management

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Definitions:

Expense

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities.

Payment

The transfer of money or goods in exchange for a product or service.

Verifiability

The quality of information that different observers could broadly agree the information is a faithful representation, thus helping assure users that information faithfully represents the economic phenomena it purports to represent.