One Objective of an Operational Audit Is To

question 43

Multiple Choice

One objective of an operational audit is to:

• A) determine whether the financial statements fairly present the entity's operations.
• B) evaluate the feasibility of attaining the entity's operational objectives.
• C) make recommendations for improving performance.
• D) report on the entity's relative success in attaining profit maximization.

Identify the role of source documents in evidencing transactions.

Understand the correct order of debiting and crediting accounts in journal entries.

Interpreting the effect of various transactions on total assets, liabilities, shareholders' equity, including dividends.

Grasp the principle of double-entry accounting and its impact on the financial statements.

---

Definitions:

Analytics

The systemic computational analysis of data or statistics used to discover patterns and interpret information to support decision-making.

Analytics

The systematic computational analysis of data or statistics to identify patterns, trends, or insights.

Big Data

Large and complex data sets that traditional data processing software are inadequate to deal with, which require advanced techniques for analysis, capture, search, and storage.

Evidence-Based Management

The practice of making managerial decisions based on the best available scientific evidence, rather than solely on intuition or personal experience.