One objective of an operational audit is to
A) determine whether the financial statements fairly present the entity's operations.
B) determine if the auditee is in compliance with GAAP.
C) make recommendations for improving performance.
D) report on the entity's relative success in attaining profit maximization.

Question

Quizplus · Accepted Answer

The objective of an operational audit is to evaluate an organization's operations to identify areas for improvement and make recommendations for enhancing performance. This type of audit focuses on the efficiency and effectiveness of an organization's processes, rather than just its financial reporting. Therefore, options A, B, and D are not the main objectives of an operational audit.

One Objective of an Operational Audit Is to