The Objective of an Operational Audit Is to

question 9

Multiple Choice

The objective of an operational audit is to

• A)evaluate whether laws have been broken by management.
• B)evaluate fairness of presentation of financial statements.
• C)evaluate compliances with company rules and regulations.
• D)evaluate the effectiveness and efficiency with which resources are employed.

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Definitions:

Residual Standard Deviation

A measure of the amount of variability or dispersion of a set of data points around a regression line not explained by the regression itself.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility than the market, while a beta less than 1 indicates lower volatility.

Style Analysis

A technique used in finance to determine the investment strategy of a fund or portfolio by breaking down its holdings into meaningful characteristics or styles such as size, value, or growth orientation.

Jensen's Measure

Also known as alpha, it's a metric used to evaluate the performance of an investment portfolio by comparing its risk-adjusted return to a benchmark.