Auditing is an essential activity for small-business owners. Following proper auditing procedures helps businesses avoid tax problems later on, and helps companies assess their financial situations properly as they plan for the future. Operational and compliance auditing are two types of auditing that businesses use to enhance productivity and stay on track. Show
Operational Audits
Compliance Audits
Accounting
Ethics
Notes This preview shows page 11 - 13 out of 74 pages. 42. The primary difference between operational auditing and financial auditing is that inoperational auditingRefer To: 01-38A. The operational auditor is not concerned with whether the audited activity is generatinginformation in compliance with financial accounting standards.B. The operational auditor is seeking to help management use resources in the most effectivemanner possible.C. The operational auditor starts with the financial statements of an activity being audited andworks backward to the basic processes involved in producing them.D. The operational auditor can use analytical skills and tools that are not necessary infinancial auditing. 43. According to the AICPA, the purpose of an audit of financial statements is toRefer To: 01-38 Get answer to your question and much more We have textbook solutions for you! The document you are viewing contains questions related to this textbook. Accounting Information Systems Dull/Gelinas Chapter 01 - Auditing and Assurance Services44. Bankers who are processing loan applications from companies seeking large loans willprobably ask for financial statements audited by an independent CPA becauseRefer To: 01-38 Get answer to your question and much more 45. The Sarbanes-Oxley Act of 2002 prohibits professional service firms from providingwhich of the following services to an audit client? Get answer to your question and much more 46. Independent auditors of financial statements perform audits that reduceRefer To: 01-38A. Business risks faced by investors.B. Information risk faced by investors.C. Complexity of financial statements.D. Timeliness of financial statements. Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 74 pages? Upload your study docs or become a Course Hero member to access this document Tags d, Financial audit, Auditing and Assurance Services We have textbook solutions for you!The document you are viewing contains questions related to this textbook. The document you are viewing contains questions related to this textbook. Accounting Information Systems Dull/Gelinas Expert Verified Which of the following is the primary difference between operational auditing and financial auditing?The primary difference between operational auditing and financial auditing is that in operational auditing a. The auditor is not concerned with whether the audited activity is generating information in compliance with financial accounting standards.
How does operational auditing differ from other types of auditing?While an audit is usually associated with financial matters, operational audits are more comprehensive and go beyond financial data (although that type of reporting is often included). The primary information sources are policies and achievements related to the objectives of the organization.
What is the difference between financial audit and?While financial audits focuses on the analysis and verification of the financial affairs of an organization through the analysis of financial records over a given period of time, management audits examines the efficiency and adequacy of an organizations operating procedures.
What is the difference between management audit and operational audit?Management audit deals with various aspects of the management process whereas operational audit is confined to various activities and operations in the functional areas. Management audit attempts to evaluate the performance of various management process and functions.
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