What distinguishes an operational audit from a compliance audit?

The distinction between an operational audit and a compliance audit primarily lies in their specific objectives and focus areas. An operational audit centers on evaluating the efficiency and effectiveness of an organization's operations—this includes assessing processes, resource utilization, and overall performance in achieving organizational goals. The main aim is to identify areas for improvement and recommend enhancements to support operational efficiency.

In contrast, a compliance audit is aimed at ensuring that an organization is adhering to applicable laws, regulations, and policies. This type of audit evaluates whether the entity is following external standards and internal guidelines, rather than focusing on performance metrics like efficiency or effectiveness.

Therefore, the correct answer highlights the focus of the operational audit on operational efficiency as opposed to the compliance audit’s emphasis on regulatory adherence.