A review of any part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is classified as a(n)
A)audit of financial statements.
B)compliance audit.
C)operational audit.
D)production audit.

Question

Quizplus · Accepted Answer

An operational audit focuses on reviewing an organization's operational procedures and methods to evaluate efficiency and effectiveness. It is conducted with the aim of improving the overall performance of an organization through identifying opportunities for improvement. Option A, audit of financial statements, deals with the evaluation of financial reporting to ensure that the financial statements are fairly presented. Option B, compliance audit, focuses on reviewing whether an organization is adhering to regulatory requirements, laws, and policies. Option D, production audit, is focused on the production process, processes, equipment, and facilities that are used to produce goods or services.

A Review of Any Part of an Organization's Procedures and Methods