Question

Operational (performance) audits are useful because they?

1) include a comprehensive audit.
2) are concerned with the economy, efficiency, and effectiveness of an organization's activities.
3) involve gathering evidence to determine whether the entity under review has followed the rules, policies, procedures, laws, or regulations with which they must conform.
4) ensure companies pay appropriate taxes.

Answer 1

Operational audits are useful because they focus on an organization's economy, efficiency, and effectiveness. They involve gathering evidence to ensure compliance with rules and regulations.

Step-by-step explanation:

Operational (performance) audits are useful because they are concerned with the economy, efficiency, and effectiveness of an organization's activities. These audits gather evidence to determine whether the entity under review has followed the rules, policies, procedures, laws, or regulations with which they must conform. While ensuring companies pay appropriate taxes is not the primary focus of operational audits, it can be a part of evaluating an organization's overall performance.