Chapter 1 Quiz Shet
Chapter 1 Quiz Shet
M U LT I P L E C H O I C E
Operational audits generally have been conducted by internal and COA auditors, but maybe
performed by certified public accountants. primary purpose of an operational audit is to provide
Which of the following is the most appropriate action to be taken by a CPA who has been asked
to perform a consulting services engagement concerning the analysis of a potential merger if
he/she has little experience with the industry involved?
TRUE OR FALSE
Neutral criteria contribute to conclusions that are free from bias. TRUE
Attestation service an independent professional service that improves the quality of information
for decision makers . FALSE
Information risk is the risk that information upon which a business decision is made is
inaccurate. TRUE
Assurance is a service in which the CPA firm issues a report about the reliability of an assertion
that is the responsibility of another party . FALSE
Independent professional services that are intended to enhance the credibility of information to
meet the needs of an intended user best describe assurance service. TRUE
Independent auditors are certified public accountants or accounting firms that perform audits of
commercial and non - commercial financial entities. TRUE
IDENTIFICATION
Accounting is a continuous process, i.e. day to day recording of transactions are done. While
Auditing is a periodic process
Operational audits evaluates the efficiency and effectiveness of any part of an organization’s
operating procedures and methods
financial report is prepared in all material respects in accordance with an applicable financial
framework.