An Auditor Is Concerned That Her Company's Purchasing Process Is

question 65

Multiple Choice

An auditor is concerned that her company's purchasing process is not functioning as efficiently as possible.Which type of audit will best address her concern?

• A)Financial
• B)Operational
• C)Management
• D)Purchasing

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on a proportion of its profits.

Gain Recognition

The process of recording increases in asset value, typically when assets are sold for more than their book value.

Consolidated Income Statement

A financial statement that combines the income, expenses, and profits of a parent company and its subsidiaries to present the overall performance.

Subsidiary Sold Land

An event where a company owned by another company sells a piece of real estate.