An Operational Audit Would NOT Include Determining ________

question 5

Multiple Choice

An operational audit would NOT include determining ________.

• A)Whether the entity is acquiring,protecting,and using its resources effectively.
• B)The effectiveness of an organization and its programs,activities,and functions.
• C)The causes of inefficiencies or uneconomical practices.
• D)Whether the entity has complied with laws and regulations.

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Definitions:

Financial Intermediary

An entity that acts as a middleman between two parties in a financial transaction, such as banks, investment funds, and insurance companies.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation and output increases.

Capital Markets

Financial markets for buying and selling equity and debt instruments, facilitating the raising of capital.

Real Asset

Physical or tangible assets, such as real estate, commodities, or natural resources, which have intrinsic value.