“Internal auditing” means an appraisal activity established within an entity as a service to the entity. Its functions include, amongst other things, monitoring internal control.
(a) Internal audit function – An appraisal activity established or provided as a service to the entity. Its functions include, amongst other things, examining, evaluating and monitoring the adequacy and effectiveness of internal control.
Operational audit is a systematic review of effectiveness, efficiency and economy of operation. Operational audit is a future-oriented, systematic, and independent evaluation of organizational activities.
Which of the following best describes the operational audit? It concentrates on seeking aspects of operations in which waste could be reduced by the introduction of controls. U.S. generally accepted accounting principles or International Financial Reporting Standards.