Multiple Choice Questions
The following questions deal with operational auditing.
Choose the best response.
a. Which of the following best describes the operational audit?
(1) It requires constant review by internal auditors of the administrative controls as they relate to the operations of the company.
(2) It concentrates on implementing financial and accounting controls in a newly organized company.
(3) It attempts and is designed to verify the fair presentation of a company's results of operations.
(4) It concentrates on seeking aspects of operations in which waste would be reduced by the introduction of controls.
b. The evaluation of audit field work of an operating unit should answer the following questions:
1. What are the reasons for the results?
2. How can performance be improved?
3. What results are being achieved?
What is the chronological order in which these questions should be answered?
(1) 3-1-2
(2) 1-3-2
(3) 3-2-1
(4) 1-2-3
(5) 2-3-1
c. The purpose of governmental effectiveness or program auditing is to determine if the desired results of a program are being achieved. The first step in conducting such an audit is to
(1) Evaluate the system used to measure results.
(2) Determine the time frame to be audited.
(3) Collect quantifiable data on the program's success or failure.
(4) Identify the legislative intent of the program being audited.