A. An operational audit is concerned with examining and evaluating systems of internal control, overall company operations, and the quality of performance in carrying out assigned responsibilities. Whether the scrap material inventory is valued at the lower of cost or market is part of a financial statement audit, not an operational audit.

B. An operational audit is concerned with examining and evaluating systems of internal control, overall company operations, and the quality of performance in carrying out assigned responsibilities. How the scrap material inventory is reported on the financial statements is part of a financial statement audit, not an operational audit.

C. An operational audit is concerned with examining and evaluating systems of internal control, overall company operations, and the quality of performance in carrying out assigned responsibilities. Whether the physical inventory count of the scrap material agrees with the recorded amount is part of a financialstatement audit, not an operational audit.

D. An operational audit is concerned with examining and evaluating systems of internal control, overall company operations, and the quality of performance in carrying out assigned responsibilities. Auditors will compare the results of the operations with a standard level of behavior or output that has been set. The focus of an operational audit is on efficiency, effectiveness and economy. The internal auditor will make recommendations about how to improve the process or operation.