Operational Auditing
- 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
- 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
- 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.
- 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
- 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
- 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
- 7.The following performs Operations Audit, except __________
- A.
CPA Firms / External Auditors
- B.
Government Auditors
- C.
Consultants
- D.
None of the above
- 8.The following are tools in Operations Audit, except __________
- A.
Risk – Based Approach
- B.
Process Approach
- C.
Systems Monitoring
- D.
None of the above
- 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
- 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
Questions: 33 | Attempts: 5989 | Last updated: Mar 22, 2022
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Sample QuestionWhich of the following is an effective audit planning procedure that helps prevent misunderstandings and inefficient use of audit personnel?
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