The primary difference between operational auditing and financial auditing is that in operational auditing,the auditor
A) Is concerned only with the audited activity's adherence to company policy and procedures.
B) Is seeking to help management use resources in the most effective manner possible.
C) Starts the process with the financial statements of an activity being audited and works backward to the basic processes involved in producing them.
D) Can use analytical skills and tools that are not necessary in financial auditing.

Question

Quizplus · Accepted Answer

Operational auditing is concerned with examining the effectiveness and efficiency of an organization's operations and management's use of resources. The auditor seeks to identify opportunities for improvement and provide recommendations to enhance the efficiency and effectiveness of operations. Financial auditing, on the other hand, primarily focuses on the accuracy and reliability of financial statements and ensuring compliance with accounting standards and regulations. While both types of audits may use analytical skills and tools, operational auditing involves a more in-depth analysis of an organization's operations and processes.

The Primary Difference Between Operational Auditing and Financial Auditing Is