{{Multiple issues| {{one source|date=April 2017}} {{Cleanup|reason=floating table is not appropriate.|date=January 2022}} }} {| class="wikitable floatright" | width="250" |- style="text-align:center;" | Characteristics |- | '''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. |} '''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.
The 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 *Risk-based auditing
==References== {{Reflist}}
Category:Types of auditing Category:Internal audit Category:Operational risk