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
organized 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.
Operational audit is a series of steps the auditors take to
evaluate the operational activity of the company. It is a more
enhanced view of the adutirs on all aspects of the business with
the main goal being to determine whether the internal controls of
the business like th epolicies, procedures are sufficent to operate
the business effetively and effeciently.
So, the answer would be Option (4).
All other options donot reflect the goal of operational audit(as
discussed above)
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