The primary objective of performance auditing is to:
A) Assess financial accuracy
B) Evaluate the effectiveness of operations
C) Identify tax loopholes
D) Calculate profits
Operational auditing primarily focuses on:
A) The accuracy of financial statements
B) The efficiency and effectiveness of operations
C) The detection of fraud
D) Business tax compliance
Which of the following is a key focus of performance auditing?
A) Reviewing the company’s marketing strategy
B) Evaluating the use of resources to achieve objectives
C) Ensuring accurate tax filings
D) Reviewing stock market performance
What is one of the main purposes of operational auditing?
A) To ensure that financial transactions are reported accurately
B) To assess how well an organization is achieving its goals
C) To increase operational costs
D) To review employee performance
Performance audits can be best defined as:
A) Ensuring legal compliance in operations
B) Assessing the economy, efficiency, and effectiveness of a program or operation
C) Verifying the accuracy of financial records
D) Analyzing marketing strategies
Which of the following is an objective of performance auditing?
A) To increase company revenue
B) To assess compliance with external regulations
C) To evaluate whether resources are being used optimally
D) To verify tax payments
Operational audits help organizations:
A) Reduce taxes
B) Monitor employee work hours
C) Improve internal processes and operations
D) Increase profit margins
Performance auditing helps in improving:
A) Financial statement accuracy
B) Business strategy
C) Resource management and operational efficiency
D) Tax compliance
Which of the following does NOT fall under the scope of an operational audit?
A) Evaluating the operational performance of the company
B) Determining financial statement accuracy
C) Suggesting improvements to business operations
D) Assessing the use of resources in operations
One of the key outcomes of performance audits is:
A) Identification of financial discrepancies
B) Recommendations for improving efficiency and effectiveness
C) Reducing tax obligations
D) Verification of employee performance
Performance audits may include assessments of:
A) Financial profitability only
B) Internal controls only
C) The economy, efficiency, and effectiveness of a program
D) External audits
Operational auditing is often used to:
A) Test financial transaction validity
B) Assess the effectiveness of internal controls
C) Evaluate how well an organization meets its objectives
D) Ensure that financial records are accurate
The primary focus of performance audits is on:
A) Ensuring financial accuracy
B) Improving operational processes and resource allocation
C) Verifying tax filings
D) Increasing employee productivity
An operational audit typically does NOT focus on:
A) Identifying inefficiencies in operational processes
B) Evaluating employee performance
C) Assessing the financial accuracy of transactions
D) Suggesting improvements for operational practices
Performance auditing is conducted to:
A) Detect fraud
B) Evaluate whether the organization is achieving its objectives effectively and efficiently
C) Verify the company’s profits
D) Ensure regulatory compliance
What is one of the goals of operational audits?
A) To predict future profits
B) To assess the accuracy of financial reports
C) To evaluate how well resources are used to meet objectives
D) To provide tax planning strategies
Which of the following is a result of an operational audit?
A) Suggestions for improving operational effectiveness
B) A detailed report of tax filings
C) A review of financial statements
D) A list of employees with their job performance scores
Performance audits typically evaluate the:
A) Tax compliance of an organization
B) Business structure and strategies
C) Efficiency and effectiveness of a program or operation
D) Legal compliance of an organization
Operational auditing focuses on:
A) The company’s external environment
B) The internal operations and their effectiveness
C) The company’s profit margins
D) The company’s social responsibility practices
The main aim of performance auditing is to:
A) Verify compliance with legal requirements
B) Measure how well the company meets its operational objectives
C) Ensure financial transactions are accurate
D) Monitor employee performance
Operational audits help organizations to:
A) Increase customer satisfaction
B) Optimize resource allocation and improve processes
C) Create new marketing strategies
D) Maximize profits without considering efficiency
Performance audits typically evaluate:
A) Operational effectiveness and efficiency
B) Financial integrity and tax compliance
C) Investment portfolios
D) Business brand strength
What does operational auditing primarily seek to improve?
A) Company’s market share
B) Internal controls and operational efficiency
C) Profit margins
D) Business revenue
Performance audits can help to:
A) Increase taxes
B) Identify improvements in business processes and resource usage
C) Analyze competitors’ strategies
D) Reduce operational costs without improving efficiency
In a performance audit, auditors examine:
A) Only the tax records
B) The use of resources and effectiveness in achieving organizational goals
C) Legal compliance issues only
D) Sales strategies
Which type of auditing is more concerned with improving the efficiency of operational activities?
A) Financial auditing
B) Tax auditing
C) Performance auditing
D) Legal auditing
The focus of operational auditing is:
A) Detecting fraudulent financial activities
B) Examining the effectiveness of internal controls and operational performance
C) Evaluating financial statements
D) Verifying tax obligations
Performance audits evaluate:
A) Financial transactions
B) The impact of operational changes on resource efficiency
C) Compliance with environmental regulations
D) Legal disputes
The ultimate benefit of performance auditing is to:
A) Reduce tax rates
B) Enhance financial transparency
C) Optimize the use of resources and improve performance
D) Increase profit margins without consideration of costs
The operational audit focuses on:
A) Business tax calculations
B) The financial strength of a company
C) The efficiency and effectiveness of operations
D) Legal compliance of operations
