Comparison of Budgets and Operating Objectives with Performance Reveals Material

question 45

Multiple Choice

Comparison of budgets and operating objectives with performance reveals material discrepancies.This is an application of which of the following five internal audit scope standards?

• A)Operating and financial information integrity
• B)Policy compliance verification
• C)Asset security verification
• D)Resource use efficiency
• E)Operational effectiveness

---

Definitions:

Technological Competence

Technological competence involves the knowledge, skills, and abilities to effectively use technological tools and processes in a specific domain or activity.

Fiduciary Relationship

A legal relationship in which one party, the fiduciary, is obligated to act in the best interest of another party, typically in financial or property matters.

Expulsion from the Firm

The act of formally removing a partner or member from a business or professional practice due to misconduct or breach of agreement.

Fiduciary Duty

An obligation to act in the best interest of another party, such as the relationship between a trustee and the beneficiaries of a trust.