1.Which of the following is true?

a.The criteria for any audit (an operational audit or a financial audit) are GAAP

b.Both external and internal auditors can provide management advice to the company

c.A financial audit is designed to determine if the company is acquiring resources at the lowest cost

d.External auditors may perform operational audits and internal auditors may perform financial audits

2.Which type of auditor would typically perform an operational audit?

a.External auditor

b.Governmental auditor

c.Internal auditor

d.Both B and C

3 The five major steps in conducting an audit are:

A.Testing internal controls

B.Audit report

C.Planning and risks assessment

D.Testing transactions and balances

E.Client acceptance and continuance

The proper sequence in applying the above steps is:

a.ECADB

b.ECDAB

c.EBCDA

d.EADCB