A periodic review by internal auditors that stresses the evaluation of the efficiency and effectiveness of a department's procedures is called a (an):
A)Operational audit
B)Financial audit
C)Management-by-exception audit
D)Audit by exception

Question

Quizplus · Accepted Answer

An operational audit focuses on evaluating the efficiency and effectiveness of a department's procedures. This type of audit is usually conducted by internal auditors periodically. Hence, choice A is the best answer. Financial audits primarily focus on the accuracy of financial statements, while management-by-exception and audit by exception are not commonly used terms in auditing.

A Periodic Review by Internal Auditors That Stresses the Evaluation