What Is an Operational Audit?
An operational audit tests a company’s internal systems and procedures used to produce its goods and services sold to consumers. These audits test production operations for efficiency and effectiveness. Audits may be conducted by internal employees or external auditors with business experience relating to the company’s operational procedures. Operational audits are usually a deeper review of company operations than a financial audit, which is conducted in an after-the-fact audit process. Benefits from operational audits include objective opinions, improved workflow or cost allocation processes and quicker turnaround times. Staff accountants or accountants from public accounting firms usually conduct operational audits. Using staff accountants for an internal operational audit allows companies to have an objective opinion on how well the company is using their business resources. Department managers may have a tendency to fudge their audit figures since they often receive compensation b
