PrEl 3 - Operations Auditing
Midterm Examination
Name: _________________________
General Instruction: All answers must be indicated in the google docs using this template
provided. Read each question carefully and indicate the correct answer. The examination is for
2 hours. God Bless.
TRUE OR FALSE. Indicate whether the statement is true or false.
__________ 1. Operational Auditing is a systematically and dependently analyzes an
organization’s operations to evaluate operation defectiveness, efficiency, and economy, with a
future-oriented perspective.
__________ 2. One of the operational audit challenges is that it can be time consuming.
__________ 3. In general the objectives of the operational auditing is align to give one
overarching outcome and that is to do more with the least amount of resources possible.
__________ 4. Function Based deals with an entire organization and how efficiently and
effectively functions interact.
__________ 5. In general the objectives of the operational auditing is align to give one
overarching outcome and that is to do more with the least amount of resources possible.
__________ 6. Operational audits are primarily concerned with whether an organization follows
appropriate laws and regulations.
__________ 7. In operational auditing, the preliminary survey serves as a guide for the
development of the audit program.
__________ 8. When no weaknesses in internal control are discovered during an operational
audit, the appropriate report will be either standard unqualified or unqualified with explanatory
language.
__________ 9. Thoroughness is when you make a decision and not follow it through to its
logical conclusion.
__________ 10. Follow-up is a process by which internal auditors evaluate the adequacy,
effectiveness, and timeliness of actions taken by management on reported
MULTIPLE CHOICE. Read each question and indicate the letter of the correct answer in the
this google docs provided. (write your answer in capital letters)
__________ 11. A primary purpose of operational auditing standards is to provide:
A.A means of assurance that internal control is operating effectively.
B.Aid to the independent auditor in conducting the audit of financial
statements.
C.The results of internal examinations of financial and accounting matters to
the company's top-level management.