Need accounting help with the difference between an operational audit and a financial statement audit? (Accounting 403 Auditing I)

Accounting
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What is the difference between an operational audit and a financial statement audit?  Explain.

Jan 9th, 2016

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Operational Audit is a systematic review of effectiveness, efficiency and economy of operation. Operational audit is a future-oriented, systematic, and independent evaluation of organizational activities

A financial statement audit is the examination of an entity's financial statements and accompanying disclosures by an independent auditor. The result of this examination is a report by the auditor, attesting to the fairness of presentation of the financial statements and related disclosures.


Explanation:

Operational audit is a review of  how effective efficient and economical the operations of an organization are while a financial audit is a review of the companies financial statements by an independent auditor to determine the reality on the financial state of the organization, by determining the fairness of all financial statements and disclosures

Operational audit seeks to determine the cost of operation and determine its effectiveness.

Financial audit seeks to establish the real financial state of an organization.


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Jan 9th, 2016

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