What distinguishes internal control evaluation and testing for financial and operational auditing?
A)Purpose of the work
B)Scope of the work
C)Both A and B
D)Neither A nor B

Question

Quizplus · Accepted Answer

The purpose and scope of internal control evaluation and testing differ for financial and operational auditing. For financial auditing, the focus is on the accuracy and completeness of financial statements and compliance with accounting standards, whereas, for operational auditing, the focus is on efficiency, effectiveness, and achieving operational goals. The scope of work also varies, with financial auditing being more limited to financial processes and transactions, while operational auditing is broader and covers all areas of the organization. Therefore, both the purpose and scope of the work distinguish internal control evaluation and testing for financial and operational auditing.

What Distinguishes Internal Control Evaluation and Testing for Financial and Operational