Which of the following best describes the operational audit?

The following questions deal with types of audits and auditors.
Choose the best response.
a. Operational audits generally have been conducted by internal auditors and govern-
mental audit agencies but may be performed by certified public accountants. A pri-
mary purpose of an operational audit is to provide
(1) a means of assurance that internal accounting controls are functioning as planned.
(2) the results of internal examinations of financial and accounting matters to a
company’s top-level management.
(3) a measure of management performance in meeting organizational goals.
(4) aid to the independent auditor who is conducting the audit of the financial
statements.
b. Which of the following best describes the operational audit?
(1) It requires the 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 control in a newly or-
ganized company.
(3) It focuses on verifying the fair presentation of a company’s results of operations.
(4) It concentrates on seeking aspects of operations in which waste could be reduced
by the introduction of controls.
c. Compliance auditing often extends beyond audits leading to the expression of opin-
ions on the fairness of financial presentation and includes audits of efficiency, econ-
omy, effectiveness, and
(1) adherence to specific rules or procedures.
(2) accuracy.
(3) evaluation.
(4) internal control.

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