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:

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, not always perfect but often effective for quick judgments.

Neoclassical Economists

Economists who focus on how consumers make choices based on their preferences and budgets, and how those choices affect the use of resources and the distribution of goods.

Better Off

A term indicating an improvement in someone's situation or condition, often measured in terms of financial wellbeing, health, or quality of life.

Behavioral Economists

Behavioral economists study how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions, often challenging the assumption of rational decision-making.