Final answer:
Operational auditing primarily evaluates the efficiency and effectiveness of a company's operations, looking at internal control structures, compliance, and performance improvement opportunities.
Step-by-step explanation:
Operational auditing is oriented primarily toward evaluating the efficiency and effectiveness of a company's operations, including its internal control structures and processes. It aims to identify areas where performance can be improved and to ensure that the organization is complying with laws, regulations, and internal guidelines. An operational audit may cover various aspects such as the effectiveness of operations, the reliability of financial reporting, the compliance with applicable laws and regulations, and safeguarding assets.
Unlike financial auditing, which is focused on the accuracy of financial statements, operational auditing is more concerned with the day-to-day operations and provides management with insights on operational efficiencies and cost-saving opportunities. It assesses whether resources are being used in the most efficient and effective manner to accomplish the organizational objectives and identifies any operational risks that could impede the organization’s performance.