Operational Audit

An operational audit is an examination of the manner in which an organization conducts business, with the objective of pointing out improvements that will increase its efficiency and effectiveness. This type of audit is substantially different from a normal audit, where the objective is to examine the adequacy of controls and to evaluate the fairness of presentation of the financial statements.

Operational audits are usually conducted by the internal audit staff, though specialists can be hired to conduct reviews in their areas of expertise. The primary users of the audit recommendations are the management team, and especially the managers of those areas that have been reviewed.

Reasons to perform an operational audit

Operational audit checklist

Select and screen auditors

Define audit plan and scope

Pull together reference documents

Identify administrative support

Research operational procedures

Collective statistical evidence

Audit evidence from all sources

Evaluate Evidence

Compile audit findings

Share audit conclusions

Give actionable advice

Follow up with questions and concerns