Operational Auditing Trivia Quiz
What do you know about auditing? Do you have any idea about operational auditing and how it is done? Here, we have a trivia quiz based on operational auditing to test whether you know the basics of auditing. Operational auditing refers to the process of evaluating the operational activities of a company. Do you know about the processes in detail? Give this quiz a try and check for the same. We wish you all the very best to you!
Questions and Answers
- 1.
Internal Auditing as defined by the Institute of Internal Auditors (IIA) is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of Risk Management, Control and __________
- A.
Business Operations
- B.
Governance Processes
- C.
All of the above
- D.
None of the above
Correct Answer
B. Governance ProcessesExplanation
Internal Auditing, as defined by the Institute of Internal Auditors (IIA), aims to add value and enhance an organization's operations. It achieves this by evaluating and improving the effectiveness of Risk Management, Control, and Governance Processes. Therefore, the correct answer is "Governance Processes." This means that internal auditing helps organizations achieve their objectives by ensuring that their governance processes are efficient and effective. It provides an independent and objective assessment of the organization's governance practices, ensuring compliance with regulations and best practices.Rate this question:
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- 2.
The objective of Operational Audit is to evaluate and improve the effectiveness, efficiency and __________ of operations.
- A.
Economy
- B.
Economics
- C.
Quality and Quantity
- D.
All of the above
Correct Answer
A. EconomyExplanation
The objective of Operational Audit is to evaluate and improve the effectiveness, efficiency, and economy of operations. Economy refers to the prudent and judicious use of resources to minimize costs and maximize benefits. Therefore, evaluating and improving the economy of operations is an important aspect of operational audit.Rate this question:
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- 3.
Operational Audit focuses on __________
- A.
Financial Reporting objectives such as GAAP.
- B.
Corporate standards of business conduct, internal policies; specific laws and regulations.
- C.
Mission, Vision and Objectives of the Organization and its management.
- D.
All of the above.
Correct Answer
C. Mission, Vision and Objectives of the Organization and its management.Explanation
Operational Audit focuses on the mission, vision, and objectives of the organization and its management. This type of audit evaluates whether the organization's operations are aligned with its strategic goals and objectives. It assesses the efficiency and effectiveness of the organization's processes, procedures, and systems to ensure that they are contributing to the achievement of its mission and vision. By conducting an operational audit, organizations can identify areas for improvement and make necessary adjustments to enhance their overall performance and success.Rate this question:
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- 4.
The following are reasons necessitating Operations Audit, except:
- A.
Management may need the auditor’s analysis and objective report to sell changes to upper management.
- B.
Management does not see the need for change.
- C.
All of the above
- D.
None of the above
Correct Answer
D. None of the aboveExplanation
The correct answer is "None of the above." This means that all of the given reasons are valid and can necessitate an operations audit. Management may need the auditor's analysis and objective report to sell changes to upper management, indicating that they value the auditor's expertise and credibility. Additionally, if management does not see the need for change, an operations audit can help identify areas for improvement and convince them of the necessity. Therefore, all of the given reasons can justify the need for an operations audit.Rate this question:
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- 5.
One of the 6 E’s of Operational Audit, it refers to performing tasks with reasonable effort (doing things the right way); ratio of actual inputs to actual outputs.
- A.
Economy
- B.
Efficiency
- C.
Effectiveness
- D.
Equity
Correct Answer
B. EfficiencyExplanation
Efficiency is one of the 6 E's of Operational Audit and it refers to performing tasks with reasonable effort, or doing things the right way. It is a measure of the ratio of actual inputs to actual outputs. In other words, efficiency focuses on how well resources are utilized to achieve desired outcomes. It is important for organizations to strive for efficiency in order to minimize waste, optimize productivity, and maximize cost-effectiveness.Rate this question:
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- 6.
It is a type of Operational Audit which deals with process, quality, safety, risk, environment control techniques, etc., and is generally initiated at the request of the management for varied purposes.
- A.
Functional
- B.
Special Assignments
- C.
Systems Monitoring
- D.
None of the above
Correct Answer
B. Special AssignmentsExplanation
Special Assignments is the correct answer because it refers to a type of operational audit that focuses on specific tasks or projects requested by management. This type of audit may involve evaluating processes, quality control measures, safety protocols, risk management strategies, and environmental controls. Special Assignments are initiated at the request of management and can serve various purposes within an organization. The other options, Functional and Systems Monitoring, do not accurately describe this type of operational audit.Rate this question:
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- 7.
The following performs Operations Audit, except __________
- A.
CPA Firms / External Auditors
- B.
Government Auditors
- C.
Consultants
- D.
None of the above
Correct Answer
C. ConsultantsExplanation
The question is asking which group does not perform Operations Audit. CPA Firms/External Auditors, Government Auditors, and Consultants are all commonly involved in conducting Operations Audits. Therefore, the correct answer is "None of the above."Rate this question:
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- 8.
The following are tools in Operations Audit, except __________
- A.
Risk – Based Approach
- B.
Process Approach
- C.
Systems Monitoring
- D.
None of the above
Correct Answer
C. Systems MonitoringExplanation
This question is asking to identify the tool that is not included in Operations Audit. The options provided are Risk-Based Approach, Process Approach, Systems Monitoring, and None of the above. The correct answer is Systems Monitoring. This means that Systems Monitoring is not considered a tool in Operations Audit, while the other options are.Rate this question:
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- 9.
IPPF Standard 2120.A1 of the Institute of Internal Auditors on “Risk Management” states that “The internal audit activity must evaluate risk exposure relating to the organization’s governance, operations and information systems regarding the…” following, except
- A.
Effectiveness and efficiency of financial and operational information
- B.
Compliance with laws, regulations and contracts
- C.
Safeguarding assets
- D.
None of the above
Correct Answer
A. Effectiveness and efficiency of financial and operational informationExplanation
The correct answer is "Effectiveness and efficiency of financial and operational information." This is because IPPF Standard 2120.A1 states that the internal audit activity must evaluate risk exposure relating to the organization's governance, operations, and information systems, but it does not specifically mention evaluating the effectiveness and efficiency of financial and operational information. The other options, compliance with laws, regulations, and contracts, and safeguarding assets, are mentioned as areas that should be evaluated for risk exposure.Rate this question:
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- 10.
It is an Operations Audit Tool performed by company personnel / process owners who are held accountable for execution, monitoring and improving the business process in question.
- A.
Value – for – Money Approach
- B.
Risk – Based Approach
- C.
Control Self – Assessment
- D.
None of the above
Correct Answer
C. Control Self – AssessmentExplanation
Control Self-Assessment is the correct answer because it aligns with the given explanation. Control Self-Assessment is a process where company personnel or process owners evaluate and assess the effectiveness of their own internal controls. It involves individuals who are responsible for executing, monitoring, and improving the business process being audited. This approach allows for self-evaluation and accountability in identifying and addressing control weaknesses or risks within the organization.Rate this question:
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