Ms. Wilson is president of Wilson Company, which operates hamburger restaurants in Houston, New Orleans, Memphis, and Dallas. She believes that her company may be large enough to need an operational audit of its activities. Profits have been good but not as good as expected. Certain accounting records are maintained at each restaurant, and others are maintained centrally. She has estimated the cost of an operational audit and would like to compare the cost with the potential benefits to be gained from such an audit. Ms. Wilson has a sales background. Required:

a. Describe the general differences between a financial statement and an operational audit.

b. Describe some general benefits Ms. Wilson may derive from an operational audit of her business.