Question to be answered. Consider the examples below. Please identify which of the three "E's" each example represents. Discuss how the evaluation of the three "E's" fits into the specific objectives of the operational audit. Examples:
1. Mr. Brown, a retail manager, keeps large amounts of inventory on hand. He feels it's necessary just in case a customer desires a product.
2. The cost and budget department at the Bradley corporation prepares quarterly budget/actual variance analysis for each quarter.
3. Supervisor requires staff meetings three times during the week.
4. The mail clerk has an MBA degree.
5. At ABC Company, both the treasury department and general accounting department reconcile investments and prepare a month end investment report that includes similar information.