Risk Exposure Audit Procedures

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What is the primary focus of an operational audit?

Management practices (correct)

Customer satisfaction

Financial circumstances

Product development

In operational auditing, what is analyzed to make an organization's operations more efficient and effective?

Advertising campaigns

Processes and systems (correct)

Customer base

Employee salaries

When conducting an operational audit, what triggers the need to focus on a specific area of the business?

Increase in employee satisfaction

Decrease in customer complaints

Expansion of product lines

Introduction of new laws and guidelines (correct)

What does an audit of operating units in operational auditing refer to?

Assessing different functions of departments Signup and view all the answers

In operational auditing, what are the objectives related to when new rules are implemented?

Internal policies, procedures, and guidelines Signup and view all the answers

What are the components of the COSO framework for operational audits?

Risk assessment, Control activities, Knowledge of industry, Organization skills Signup and view all the answers

Which organization is NOT part of the bodies associated with the COSO framework?

The Institute of Electrical and Electronics Engineers Signup and view all the answers

What is the purpose of a COSO cube in operational audits?

To demonstrate the relationship between internal control elements Signup and view all the answers

Which skill is NOT mentioned as required for effective operational audits?

Physical fitness and agility Signup and view all the answers

In the phases of an operational audit, what does 'Planning' primarily involve?

Defining the population of interest and determining audit methodology Signup and view all the answers

Which phase is considered one of the longest phases in an audit process?

Fieldwork Signup and view all the answers

What is the main purpose of identifying risk factors during the planning phase of an operational audit?

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What is the primary focus of an Enterprise Risk Assessment?

Assessing the highest risk exposure areas Signup and view all the answers

Which of the following best describes the difference between an Audit Plan and an Audit Program?

An Audit Plan determines the audit universe to be reviewed, while an Audit Program specifies the steps to be taken. Signup and view all the answers

What type of assets might require special care and oversight in operational auditing?

Intellectual assets Signup and view all the answers

Why is fire prevention month considered a high-risk period in auditing?

Because of the potential for fire hazards Signup and view all the answers

What is the purpose of asking 'What could go wrong?' during risk identification in planning?

To identify potential risks and issues that may arise Signup and view all the answers

How do intellectual assets differ from physical assets in operational auditing?

Intellectual assets include copyrights and personally identifiable information. Signup and view all the answers

What is the main difference between planning and fieldwork in the operational audit process?