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SSC Audit Tax Finance P-II QUESTION #6219
Question 1
In an 'Operational Audit', the auditor focuses on 'Efficiency' and 'Effectiveness'. These criteria are often considered:
  • Clearly defined by International Financial Reporting Standards (IFRS)
  • Subjective and difficult to evaluate objectively✔️
  • Strictly limited to accounting and financial records
  • Mandated by the Companies Ordinance 1984 for all firms
Correct Answer Explanation
Efficiency and effectiveness are more difficult to evaluate objectively than compliance or financial presentation, making operational auditing more like management consulting.