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CS Professional · Compliance Management, Audit and Due Diligence · Internal Audit and Performance Audit

Meridian Textiles Ltd has an internal audit function. Its charter requires the function to review the economy, efficiency and effectiveness of operating activities, including non-financial activities such as the dispatch process. Under SA 610 (Revised), this assignment is best described as which type of internal audit activity?

This is a review of operating activities. SA 610 (Revised) describes it as reviewing the economy, efficiency and effectiveness of operating activities, including non-financial activities, which matches the dispatch process review rather than financial information testing, compliance review or governance work.

  1. AReview of operating activitiesCorrect
  2. BExamination of financial and operating information
  3. CReview of compliance with laws and regulations
  4. DActivities relating to governance

Explanation

The official text lists 'Review of operating activities' as the assignment to review the economy, efficiency and effectiveness of operating activities, including non-financial ones. Examination of financial information is about identifying, measuring and reporting information with detailed testing, so it does not fit.

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