3 -Operations Auditing

Question 1

It is how the functional areas of a business account for their activities and exercise financial control over them.

Answer 1

Operational audit

Question 2

Limiting factors as to why enterprise can’t afford to broad an audit

Answer 2

1. Difficulty of obtaining people who can do a broad type of audit,
2. Individuals may not like to be reported upon

Question 3

Key issue for a business and its internal audit function to decide upon

Answer 3

Whether the scope of internal audit work in an operational area of the business should be restricted to a review of the appropriateness of, and extern of compliance with, key internal controls or should be a more comprehensive review of the operation.

Question 4

COSO means

Answer 4

Committee of Sponsoring Organizations

Question 6

It is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.

Answer 6

Internal auditing

Question 7

How does internal auditing help an organization?

Answer 7

It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.