An Operational Audit Differs in Many Ways from an Audit

question 42

Multiple Choice

An operational audit differs in many ways from an audit of financial statements. Which of the following is the best example of one of these differences?

• A) The usual audit of financial statements covers the four basic statements, whereas the operational audit is usually limited to either the balance sheet or the income statement.
• B) The boundaries of an operational audit are often drawn from an organization chart and are not limited to a single accounting period.
• C) Operational audits do not ordinarily result in the preparation of a report.
• D) The operational audit deals with pre-tax income.

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Definitions:

Carbon Monoxide

A colorless, odorless, and poisonous gas produced by the incomplete combustion of carbon-containing materials.

Tar

A dark, thick, and sticky liquid derived from coal or wood, used for waterproofing, sealing, and paving, or as a component in certain manufacturing processes.

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The legal dissolution of a marriage by a court or other competent body.