Which type of audit seeks to enhance the overall effectiveness of business operations?

The correct answer is focused on enhancing the overall effectiveness of business operations. An operational audit specifically examines the efficiency and effectiveness of various aspects of a credit union's operations. This type of audit goes beyond simply checking compliance with regulations or accuracy of financial statements; it looks at processes, procedures, and systems in place to determine how well they support the organization’s goals and objectives.

Operational audits assess whether resources are being used optimally and if there are areas for improvement. They help identify inefficiencies, redundancies, and areas where operational performance can be enhanced. In essence, the aim is to provide actionable recommendations that can lead to better performance and ultimately improve the organization's ability to meet its strategic objectives.

In contrast, a compliance audit primarily focuses on adherence to laws and regulations, while a financial audit is more about the accuracy of financial reporting. A performance audit evaluates whether specific programs or projects are achieving their stated objectives, but it may not encompass the entire operational scope that an operational audit does. Thus, the operational audit is distinct in its goal of not just evaluating compliance or financial integrity, but actively seeking ways to improve operational effectiveness.