The following questions deal with types of audits and auditors. Select the best response for each question.

a. Operational audits generally have been conducted by internal auditors and governmental audit agencies but may be performed by public accountants. A primary purpose of an operational audit is to provide

(1) a means of assurance that internal accounting controls are functioning as planned.

(2) aid to the independent auditor, who is conducting the examination of the financial statements.

(3) the results of internal examinations of financial and accounting matters to a company's top-level management.

(4) a measure of management performance in meeting organizational goals.

b. Which of the following best describes the operational audit?

(1) It concentrates on implementing financial and accounting control in a newly organized company.

(2) It requires the constant review by internal auditors of the administrative controls as they relate to the operations of the company.

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

(4)It concentrates on seeking aspects of the operations in which waste could be reduced by the introduction of controls.

c. Comprehensive auditing extends beyond examinations leading to the expression of opinion on the fairness of financial presentation and includes audits of efficiency, economy, and effectiveness, as well as (1) accuracy.
(2) evaluation.
(3) internal control.
(4) adherence to specific rules or procedures.
(AICPA adapted)