ACCA Audit and Assurance (F8) Practice Exam

What is the primary focus of an operational audit?

1. Compliance with regulations

2. Financial statement accuracy

3. Monitoring management performance

4. Fraud detection

The correct answer is: Monitoring management performance

An operational audit primarily focuses on evaluating the efficiency and effectiveness of an organization's operations, which includes monitoring management performance. This type of audit assesses whether resources are being used optimally, processes are functioning as intended, and overall organizational goals are being met. The goal is to improve operations and ultimately enhance organizational performance. Operational audits differ from financial audits, which concentrate more on the accuracy of financial statements and compliance with accounting standards. While elements such as compliance with regulations and fraud detection might be relevant in the broader context of risk management, they are not the central focus of an operational audit. Instead, the operational audit seeks to understand how well management is implementing strategies and achieving operational goals.