Which of the Following Is Not a Difference Between Operational

question 15

Multiple Choice

Which of the following is not a difference between operational auditing and financial auditing?

• A) Both must be performed by a CPA.
• B) Operational audit reports are usually of a restricted distribution while financial audit reports are widely distributed.
• C) Operational audits often cover nonfinancial issues while financial audits do not.
• D) None of the above is a difference.

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Definitions:

Conflicts of Interest

Situations in which an individual or entity has competing interests or loyalties that could potentially influence the objective judgment or actions in their role.

Professional Conduct

Adherence to ethical standards and practices expected in a professional setting, often governed by official bodies or codes of ethics.

Short Sales

Short sales involve selling borrowed securities with the anticipation that their value will decrease, allowing them to be bought back at a lower price for a profit.

Margin Requirement

The minimum amount of equity that must be maintained in a margin account as dictated by a broker or exchange to hold a position in securities.