Operational Audits

Operational audits are performed within an organization to ensure the highest level of organizational, departmental, and process performance, and conformity with organizational policies and budgetary outlays. An operational audit can uncover inefficiencies in process, workflow, and manufacturing processes by identifying flaws in the processes, areas where slow-downs occur, and areas where costs or wastes are too high.

An operational audit may also identify business risks by finding areas of non-compliance within any given business unit, finding business areas where environmental issues, job hazards and employee safety and health are at risk, and identify areas where assets, cash-flow, intellectual properties and other ownerships contain an unacceptable exposure to risk. These audits are generally performed by internal auditors on a recurrent basis within an organization who give resultant reports to management along with recommendations to improve found inefficiencies, reduce these exposures to risk, and suggest other necessary improvements.

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Operational audit is the actual examination of the books of accounts and operations of an organization.