A. An operational audit involves examining and evaluating systems of internal control, overall company operations, and the quality of performance in carrying out assigned responsibilities. The focus of an operational audit is on efficiency, effectiveness and economy. Thus in an operational audit, the internal auditors would not compare the current staffing of a department with established industry standards for the purpose of determining whether the department has complied with all laws and regulations governing its personnel. Not only would the first not achieve the second, but determining whether the department has complied with laws and regulations in its personnel function would be the focus of a compliance audit, not an operational audit.

B. An operational audit does involve examining and evaluating systems of internal control. However, the internal auditors would not compare the current staffing of a department with established industry standards for the purpose of evaluating the adequacy of the established internal controls for the department. There is no connection between the two things.

C. An operational audit involves examining and evaluating systems of internal control, overall company operations, and the quality of performance in carrying out assigned responsibilities. Thus the focus would not be on identifying bogus employees on the department's payroll.

D. An operational audit involves examining and evaluating systems of internal control, overall company operations, and the quality of performance in carrying out assigned responsibilities. The focus of an operational audit is on efficiency, effectiveness and economy. Thus, the internal auditors would compare the current staffing of a department with established industry standards in order to assess the current performance of the department and make appropriate recommendations for improvement.