ACCA Applied Knowledge · Business and Technology · Internal controls
Which of the following is an example of an operational (value for money) internal audit assignment, as opposed to a financial audit?
Reviewing whether purchasing obtains goods economically, efficiently and effectively is an operational or value for money audit. It examines how well an activity is performed. Checking the trial balance or confirming receivables are financial audit procedures aimed at the accuracy of recorded figures.
- AReviewing whether the purchasing department obtains goods economically, efficiently and effectivelyCorrect
- BChecking that the year-end trial balance agrees to the ledgers
- CConfirming receivables balances directly with customers at the year end
Explanation
Operational audits examine the economy, efficiency and effectiveness of activities such as purchasing. Agreeing the trial balance to ledgers and confirming receivables are financial verification procedures, focused on the accuracy of accounting records.
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