An Operational Audit provides management whether the company is efficiently arranged and whether the activities of the company objectives are addressed.
Operational audit does not focus on the performance itself, but on the internal organization and their corresponding control system. This system should ensure that the desired goals are achieved. Operational audit is not a financial audit. Operational audit focuses primarily on business controls, the controls that make good business. The difference between Operational and Financial Audit is defined in sporting terms to define: Financial auditing affect the outcome of a game, while Operational auditing watching how the game is played.
How is an Operational Audit processed?
Research: During the pre-audit information about the organization and its processes is collected. With this information, the auditors place products, processes and activities of your organization in the proper perspective (business model).
Fieldwork: During the field investigation, the reference model is compared with the actual situation. This phase of the audit process consists of all activities necessary for the collection of data to findings and recommendations to be taken.
Reporting: The main component of the audit is the audit report. This is because the results, findings and recommendations of previous steps are writte down in the report. Following the reporting will be a management plan drawn up (game plan).
Evaluation: After completion of the audit one shall examine to what extent it has met the expectations of the sponsor and those of the management of the subsidiary. The aim is to learn from the audits and, where necessary, improvements in the design or conduct of the investigation.
Follow-up: Each audit will have a follow-up. This is to determine whether established plans were actually implemented and whether these have led to improved management in the organization. Depending on the game plan the follow up will take place one or two years after implementation of the operational audit. The follow up is not a full audit, but a survey of how the game plan is realized.
What are the benefits of an Operational Audit?
You have the control measures necessary so that your business objectives with reasonable certainty can be achieved.
Operational audit reports provide an essential complement to the financial reports.
With an operational audit you enabled the company to identify risks and control.
Here you can download the whitepaper Operational Audit (Dutch).