SOLVED

Learning Objective 26-4 1) Which of the following groups could not be involved in an operational audit? A) CPA firms B) Internal auditors C) Government auditors D) None of the above answers are correct; that is, all of the above could be involved. 2) Which of the following statements regarding types of operational audits is likely incorrect? A) A functional audit has the advantage of permitting specialization by auditors. B) An advantage of functional auditing is its ability to evaluate interrelated functions. C) The emphasis in an organizational audit is on how efficiently and effectively functions interact. D) Special operational auditing assignments arise at the request of management. 3) The two most important qualities for an operational auditor are: A) personality and appearance. B) independence and competence. C) competence and technical training. D) academic background and sufficient experience. 4) Which of the following can affect the independence of operational auditors? A) Responsibilities Reporting Structure Yes No B) Responsibilities Reporting Structure No No C) Responsibilities Reporting Structure No Yes D) Responsibilities Reporting Structure Yes Yes 5) Which is not a purpose of an economy and efficiency audit? A) Whether the entity is acquiring, protecting, and using resources economically and efficiently. B) The causes of inefficiencies and uneconomical practices. C) Whether the entity has complied with laws and regulations concerning matters of economy and efficiency. D) Each of the above is a purpose. 6) Which of the following best describes an audit that emphasizes how efficiently and effectively functions interact? A) operational B) compliance C) financial D) organizational 7) Which of the following is not a purpose of a program audit as performed by government auditors? A) Determination of the extent to which the desired results established by the legislature are being achieved. B) Determination of the causes of inefficiencies in sponsored programs. C) Determination of the effectiveness of organizations, programs and activities. D) Determination as to whether the entity has complied with laws and regulations applicable to the program. 8) What distinguishes internal control evaluation and testing for financial and operational auditing? A) purpose of the work B) scope of the work C) both A and B D) neither A nor B 9) Which of the following operational audits are best described by “deals with one or more of the activities as represented by functions within an organization”? A) functional B) special assignment C) organizational D) internal control 10) The “Yellow Book” defines and sets standards for performance audits. Discuss below the purpose of a program audit.