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 attempts and is designed to verify the fair presentation of a company's results of operations.

(3) It concentrates on seeking out aspects of operations for which waste would be reduced by the introduction of controls.

(4) It concentrates on implementing financial and accounting controls in a newly organized company.

b. Complaints from the public were received about processing automobile licence applications in the provincial Ministry of Transportation. You were assigned by the provincial Auditor General's office to review this opera¬ tion. Which of the following should be your first audit step?

(1) Discuss the nature of the complaints with several licensing clerks.

(2) Discuss the nature of the complaints with the deputy minister in charge of motor vehicles licensing.

(3) Send out questionnaires to recent licensees.

(4) Test the system by licensing a vehicle.

c. The first step an operational auditor should take in per¬ forming a management study to help the director of marketing determine the optimum allocation of the advertising budget for company products is to

(1) establish and discuss with the director the key objectives of the study.

(2) analyze prior years' advertising costs.

(3) hold discussions with media personnel.

(4) determine the amount of projected sales for the purpose of establishing the proposed sales budget.

d. A preliminary survey of the human resources in a data-processing function includes a review of personnel records and practices. When the audit objective is to ascertain the economy of operation of the data processing function, the internal auditor would seek evidence with respect to

(1) training programs that are in conformity with company policies and procedures.

(2) backup procedures relative to absenteeism, disability, and retirement.

(3) adequacy of the company's information dissemination procedures regarding personnel policies.

(4) assignment of personnel to tasks for which their education and training are appropriate.