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:

Dividends Received

Income received by investors for owning shares of a company, typically distributed from the company's earnings.

Operating Activities

The portion of cash flow that relates to the core operations of a business, including cash receipts from sales and cash payments for goods and services.

Payment Of Dividends

The allocation of part of a corporation's profits to its shareholders, as decided by the corporation's board of directors.

Financing Activities

This term refers to transactions and events through which a business raises funds to operate and expand, such as issuing debt or selling equity.