An audit to determine whether the auditee is following specific procedures or rules set down by some higher authority is classified as:
A) an operational audit.
B) a compliance audit.
C) a production audit.
D) an audit of financial statements.

Question

Quizplus · Accepted Answer

A compliance audit is designed to assess whether the auditee is following specific procedures or rules set down by some higher authority, such as government regulations, industry standards, or company policies. Operational audits focus on improving efficiency and effectiveness of operations, production audits specifically evaluate the production process, and audits of financial statements assess the accuracy and completeness of an organization's financial statements.

An Audit to Determine Whether the Auditee Is Following Specific