The Purpose of an Operational Audit Is to ________

question 13

Multiple Choice

The purpose of an operational audit is to ________.

• A)determine the effectiveness of internal controls
• B)detect material misstatements in the company's financial statements
• C)provide assurance on fair presentation of company financial statements
• D)assess the economy,efficiency,and effectiveness of resources and objectives

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Definitions:

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, representing long-term investments in physical assets.

Straight-line Basis

A method of calculating depreciation of an asset, which evenly spreads the cost over its useful life.

Operating Income

Earnings before interest and taxes (EBIT), which shows a company's profit from its core business operations.

Tax Payments

Tax Payments are the compulsory financial charges or levies paid to the government by individuals, businesses, or other legal entities to fund public expenditures.