# Operational auditing

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'''Objectives'''
# To appraise the effectiveness and efficiency of a division, activity, or operation of the entity in meeting organizational goals.
# To understand the responsibilities and risks faced by an organization.
# To identify, with management participation, opportunities for  improving control.
# To provide senior management of the organization with a detailed understanding of the result
'''Steps of operational audit'''
Generally Operational Audit involves following five steps;
# Preliminary preparation
# Field Survey
# Audit Programme Development
# Audit Execution
# Reporting and Follow-up
'''Advantages'''
*In addition to making the business more efficient and profitable in the long run.
*An operational audit almost always provides a company with some new, fresh perspectives. 
* It makes executives aware of problems that might not have been found otherwise and lets them evaluate risks for the future.
*Managers also can use results to motivate employees, as the company always has something to work toward at the end of the process.
'''Disadvantages'''
* Reviewing operational processes can be very time consuming and costly. 
* When employees and managers are working with the auditor, they can't do other activities that might benefit the business, so projects or production might slow temporarily. 
* Sometimes, the changes that a business makes are hard for workers to get used to, which can increase conflicts or confusion.
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'''Operational audit''' is a systematic review of effectiveness, efficiency and economy of operation. Operational audit is a future-oriented, systematic, and independent evaluation of organizational activities. 

In Operational audit financial data may be used, but the primary sources of evidence are the operational policies and achievements related to organizational objectives.<ref>{{cite web |url=http://daf.csulb.edu/offices/univ_svcs/internalauditing/audits.html |title=Operational Audit |publisher=daf.csulb.edu |date=2011-12-22 |accessdate=2013-12-28 |archive-date=2014-02-25 |archive-url=https://web.archive.org/web/20140225054422/http://daf.csulb.edu/offices/univ_svcs/internalauditing/audits.html |url-status=dead }}</ref> Operational audit is a more comprehensive form of an [Internal audit](/source/Internal_audit).

The [Institute of Internal Auditors](/source/Institute_of_Internal_Auditors) (IIA) defines Operational Audit as a systematic process of evaluating an organization's effectiveness, efficiency and economy of operations under management's control and reporting to appropriate persons the results of the evaluation along with recommendations for improvement; see aside.

==See also==
*[Internal auditing](/source/Internal_auditing)
*[Risk-based auditing](/source/Risk-based_auditing)

==References==
{{Reflist}}

Category:Types of auditing
Category:Internal audit
Category:Operational risk

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Adapted from the Wikipedia article [Operational auditing](https://en.wikipedia.org/wiki/Operational_auditing) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Operational_auditing?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.