Operational Auditing Prelim Exam

What are the "Three Es" of operational auditing?

• Economy, Efficiency, and Equity

• Economy, Efficiency, and Effectiveness

• Effectiveness, Economy, and Environment

• Efficiency, Equity, and Ethics

What is the purpose of the Revenue Process?

• To manage employee payroll

• To acquire goods and services

• To exchange products and services for cash

• To report results to management and investors

What does SAPG stand for?

• Strategic Audit Performance Guide

• System Analysis and Planning Guide

• Standard Audit Program Guide

• System Audit Program Guide

What is a main goal of benchmarking?

• To meet financial targets

• To continuously improve performance

• To assess inherent risk

• To audit a Tokyo branch

What does the Business Cycle/Processes Approach focus on?

• The overall financial statements of an organization

• Related economic events that may generate transactions

• The performance of individual employees

• The ethical behavior of management

What are the three separate areas found on a SAPG title page?

• Subject matter, audit project details, and control objectives

• Audit objectives, risk assessment, and interface analysis

• Financial records, project timeline, and key takeaways

• Company name, division, and location

Which process is concerned with activities related to an organization's capital funds?

• The Expenditure Process

• The Revenue Process

• The Treasury Process

• The Financial Reporting Process

According to the presentation, what is operational auditing?

• A way to check financial records only

• A method to evaluate how well a business process works

• A process to determine a company's market value

• A way to audit only the sales department

The Production/Conversion Process deals with the movement and usage of which of the following?

• Finished products

• Human resources

• Capital funds

• Resources

How does a System Audit Program Guide (SAPG) accommodate the concept of a business as a number of processes?

• By focusing only on financial processes.

• By classifying each SAPG according to one or more of the six "ubiquitous" processes and indicating other SAPGs it interacts with.

• By requiring a separate SAPG for each department.

• By only being used for a single business unit.