Skip to content

CS Professional · Internal and Forensic Audit · Reporting under Internal Audit

Which activity of an internal audit function, as described in SA 610 (Revised), would a report most directly address when it comments on whether the entity's operations are economical, efficient and effective, including non-financial areas?

This is the review of operating activities. SA 610 (Revised) describes it as reviewing the economy, efficiency and effectiveness of an entity's operating activities, including non-financial ones. It differs from compliance review, which tests adherence to laws and policies, and from examination of financial and operating information.

  1. AReview of operating activitiesCorrect
  2. BReview of compliance with laws and regulations
  3. CExamination of financial and operating information
  4. DActivities relating to fraud detection

Explanation

The text states that review of operating activities covers the economy, efficiency and effectiveness of operations, including non-financial activities. Compliance review concerns laws and policies, and examination of information concerns how information is identified, measured and reported.

Did you get it right without looking?

One question tells you little. A timed set on Reporting under Internal Audit shows your real accuracy, how long you take and where you lose marks.

Practise Reporting under Internal AuditFree diagnostic mock

More Reporting under Internal Audit questions