Operational audits are an essential part of any business, as they provide an objective view of the company's operations and help identify areas for improvement. This comprehensive guide for IT managers, security officers, system engineers, developers, or support service managers provides information to maximize auditing efficiency, ensure security, and create repeatable processes. When it comes to operational audits, there are three main types: financial statement auditing, compliance auditing, and operational auditing. Financial statement auditing is the process of examining a company's financial statements to ensure accuracy and compliance with regulations.
Compliance auditing is the process of evaluating a company's compliance with laws and regulations. Operational auditing is the process of evaluating the operational activities of a company, both on a daily level and on a broader scale. When performing an operational audit, you're likely to discover a part of your business that isn't meeting expectations. A full operational audit identifies risks such as these, as well as potential issues related to fraud and compliance. The results of operational audits are intended to diagnose which areas require attention and to safeguard assets by avoiding possible future risks. To see what operational audit processes and documentation look like in practice, we've included some examples.
These downloadable and customizable checklists and templates help organize and document the necessary research that is an integral part of operational audits. The specific areas of scrutiny in an operational audit will depend on the type of business being audited. When asked what are the biggest challenges in carrying out operational audits, Kandarpa says: “Sometimes it can be difficult to obtain support from senior management for the audit program, since, by its nature, the process highlights management issues. The objectives may vary depending on the type of organization and its key performance indicators, or whether the audit is carried out to respond to a specific concern related to challenges that arise in areas such as human resources, customer relations, or slowdowns in manufacturing.”Understanding the true state of operations is the basis for a healthier, more competitive and more profitable organization. By following this process, organizations can identify areas for improvement and make the necessary changes to improve their operations, increase their efficiency, and ensure compliance with regulations and policies.
