Discuss Three Major Differences Between Operational and Financial Auditing

question 33

Essay

Discuss three major differences between operational and financial auditing.

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Definitions:

Servicing Materials

Supplies or materials used in the maintenance and repair of products or equipment.

Planning Budget

A budget created at the beginning of the budgeting period that is valid for a planned level of activity.

Fixed Cost

A cost that does not change with the level of production or sales volume, remaining constant even when output varies.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level of a company, making it more adaptable than a static budget.