For financial auditing, the audit report typically goes to many users of financial statements, whereas operational audit reports are intended primarily for management.

Question

Quizplus · Accepted Answer

This is because financial audit reports provide assurance on the accuracy and reliability of the financial statements, and are therefore required by a variety of stakeholders such as shareholders, lenders, regulators, and potential investors. Operational audit reports, on the other hand, focus on the efficiency and effectiveness of operations within an organization and are primarily intended for management to help them identify areas of improvement and enhance performance.

For Financial Auditing, the Audit Report Typically Goes to Many