The primary difference between operational auditing and financial auditing is that in operational auditing
A) The operational auditor is not concerned with whether the audited activity is generating information in compliance with financial accounting standards.
B) The operational auditor is seeking to help management use resources in the most effective manner possible.
C) The operational auditor starts with the financial statements of an activity being audited and works backward to the basic processes involved in producing them.
D) The operational auditor can use analytical skills and tools that are not necessary in financial auditing.

Question

Quizplus · Accepted Answer

Operational auditing focuses on evaluating whether an organization is using its resources effectively and efficiently to achieve its objectives, while financial auditing is concerned with whether the financial statements of an organization are accurate and in compliance with accounting standards. Therefore, option B is the correct answer as it highlights the primary objective of operational auditing. Option A is incorrect because compliance with financial accounting standards is not the primary concern in operational auditing. Option C is incorrect because the operational auditor starts with the basic processes involved in an activity and works forward to determine their impact on the financial statements. Option D is incorrect because while analytical tools are used in operational auditing, they are also used in financial auditing.

The Primary Difference Between Operational Auditing and Financial Auditing Is