Introduction to Operational Audit Flashcards
(28 cards)
are very common occurrence in business
Internal audit
are rarer
These _____ can deliver wider- ranging benefits compared to internal audits
But it take more effort to carry out
That is the major reason why businesses do not do operational audits more often
Operations Audit
audits that focus on the effectiveness, productivity and cost efficiency of the operations of the business
Operations Audit
audits that focus on the effectiveness, productivity and cost efficiency of the operations of the business
Operations Audit
are a forward-looking process and are part of many organizations’ on-going business improvement process toolkit.
Operations Audit
are a forward-looking process and are part of many organizations’ on-going business improvement process toolkit.
Operations Audit
are intended to diagnose which areas need attention and to safeguard assets by averting potential future risks.
Findings of operational audit
“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”
Operations Audit
What are Objectives of Operational Audits?
- Can vary depending on the type of organizations and it’s Key Perform Indicator
- improve business performance
- lower costs
- Decrease the turn around time for many process
- improve the service delivery and customer satisfaction
What are Objectives of Operational Audits?
- Can vary depending on the type of organizations and it’s Key Perform Indicator
- To improve the way the business performs
- To help business lower costs
- To help business decrease the turnaround time for many process
- To directly improve the service delivery and customer satisfaction
Benefits of Operational Audits
- Influence positive change
- Review internal control
- Understand risk
- Inform senior manager
- Identify improvement opportunity
The broad categories of risk-and where improvements should occur are:
- Operational risk
- Financial risk
- Environmental risk
- Reputational risk
The most widely used tools are the
“Plan- Do-Check-Act or Deming Cycle, which the auditor uses in their own auditing activities.
The most widely used tools are the
“Plan- Do-Check-Act or Deming Cycle, which the auditor uses in their own auditing activities.
Operational Audits Challenges
To meet the challenges of a rapidly changing marketplace and regulatory environment, companies must continually reinvent the way they do business.
D Detailed understanding for existing process to suggest improvement
E Eliminate waste and duplication of work
M Merge operation/processes to reduce turnaround time
I Improve/Increase quality, volume and revenue
N New method, techniques, and devices for better result
G Govern man, machine, methods and money
Operational Audits Challenges
D Detailed understanding for existing process to suggest improvement
E Eliminate waste and duplication of work
M Merge operation/processes to reduce turnaround time
I Improve/Increase quality, volume and revenue
N New method, techniques, and devices for better result
G Govern man, machine, methods and money
are a type of Responsibility Assignment Matrix (RAM), which can be used to clarify and more effectively define, resource, and implement processes and procedures.
developed through cross-functional collaboration between management and personnel to define functional areas
RACI Chart
Responsible
Accountable
Consult
Inform
Auditor Evaluation Checklist
- Feedback
- Interview
- Post-Audit review
- Observation
- Review of records
Different Types of Operational Audits
- Financial audits or review
- Operations Audit
- Department reviews
- Information system audits
- Investigative audits
- Compliance audits
- Follow-up audits
- Marketing audits
focus on financial controls as they relate to reporting to internal and external governing bodies
is the bailiwick of external auditors
Internal audits complement the work of operational audits, which includes some form of budget or financial review
Financial audits or review
focus on the review and assessment of single or multiple business process
Operations Audit
may run a periodic analysis to assess the adequacy of control, how well assets are safeguarded, how resources are used, and if there is compliance with applicable laws.
Department reviews
Investigate overall infrastructure and networks, technical operations, data center operations, project management, and review security status and procedures
Information system audits
When company suspects a risk of security breach, or when one has occurred on the part of an individual or department, there often an ____ to understand causes and additional background information and research
Investigative audits
