A typical objective of an operational audit is to

10. A typical objective of an operational audit is to
determine whether an entity's
a. Internal control structure is adequately
operating as designed
b. Operational information is in accordance
with generally accepted accounting
principles.
c. Specific operating units are functioning
efficiently and effectively
d. Financial statements present fairly the
results of operations
11. The auditor communicates the results of his or
her work through the medium of the
b. Audit report.
c. Management letter.
d. Audited financial statements.
12. Which of the following types of auditing is
performed most commonly by CPA's on a
contractual basis?
a. Internal auditing
b. Income tax auditing
c. Government auditing
d. External auditing
13. Independent auditing can best be described as 14. The overall objective of internal auditing is to
VDD

c. Provide assurance that financial data have
been accurately recorded.
d. Assist members of the organization in the
effective discharge of their
responsibilities.
15. Internal auditing is an independent appraisal
function established within an organization to
examine and evaluate its activities. To that end,
internal auditing provides assistance to
16. Which of the following statements is not a
distinction between independent auditors and
internal auditors?
a. Independent auditors represent third party
users external to the auditee entity, whereas
internal auditors report directly to
management.
b. Although independent auditors strive for
both validity and relevance of evidence,
internal auditors are concerned almost
exclusively with validity.
c. Internal auditors are employees of the
auditee, whereas independent auditors are
independent contractors.
d. The internal auditor's span of coverage goes
beyond financial auditing to encompass
operational and performance auditing.