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 focuses on evaluating the effectiveness and efficiency of an organization's operations, procedures, and controls, with the objective of helping management improve operational performance. On the other hand, financial auditing primarily focuses on verifying the accuracy and completeness of financial statements and underlying transactions. Therefore, operational auditors are primarily concerned with helping management use resources in the most effective manner possible, whereas financial auditors are primarily concerned with verifying the accuracy of financial information. Option A is incorrect because operational audits go beyond just adherence to company policy and procedures. Option C is incorrect because operational auditors do not start with the financial statements and work backward; they focus on evaluating the operational processes and controls. Option D is partially correct because operational auditors may use analytical tools and techniques to evaluate operations; however, financial auditors also use such methods to verify financial information.

The Primary Difference Between Operational Auditing and Financial Auditing Is