The chief executive officer wants to know whether the purchasing function is properly meeting its charge to “purchase the right materials at the right time in the right quantities.” Which of the following types of engagements addresses this request?

Answer (B) is correct. According to Sawyer’s Internal Auditing (The IIA 1996, p. 4), an operational engagement involves a “comprehensive review of the varied functions within an enterprise to appraise the efficiency and economy of operations and the effectiveness with which those functions achieve their objectives.”