An Operational Audit Is an Example of a Compliance Audit

question 41

True/False

An operational audit is an example of a compliance audit.

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Definitions:

Collections

The process of pursuing payments of debts owed by individuals or businesses, often managed by accounts receivable departments or collection agencies.

Noncash Financing

Activities that increase long-term liabilities or equity but do not involve the immediate receipt or payment of cash, such as issuing stock or converting debt to equity.

Retirement Of Debt

The process through which a company repays or otherwise settles its outstanding debts.

Note Payable

A written promise to pay a specified amount of money, often with interest, by a certain date.