An operational audit is an independent review and evaluation of an organization’s internal operations and business processes for efficiency, compliance and risk assessments.
Key Areas Evaluated:
- Adherence to policies, SOPs, regulations and industry best practices.
- Effectiveness and controls over financial and risk management processes.
- Operational performance, productivity, quality and customer satisfaction.
Example:
A manufacturing company conducted an operational audit to identify areas of waste and recommend process improvements.
Key Takeaways:
Operational audits provide objective assurances that operations function soundly and identify opportunities for enhanced controls, compliance, cost optimization or risk prevention beyond financial statements. They support good governance, transparency and performance management.