Operations Audit
Operational Audit Best Practices A methodology to Conduct Operational Audit in Public Sector Organizations
What is Operational Audit?
Operational Audit is a methodology for assessing the conformity of implementing the procedures and methodologies set forth in the department’s instructions, regulations or documents. Operational audit is performed by specialized auditors. Upon completion of the auditing process, a report of findings with recommendations is submitted. Operational audit contributes to improving implementation, complying with the government organizations’ procedures and providing the management with points of nonconformity so that corrective and preventive actions can be taken, thereby improving the efficiency and effectiveness of operations and increasing customers’ satisfaction, as shown in Figure 1.
Operational Audit Corrective actions by the management Increase customer satisfaction 10. Follow up
- How to conduct Operational Audit? to increase Enable management to identify ways operational control.
1. Select procedures or departments whose operations are to be audited
2. Determine audit objectives
3. Select the audit team and determine the schedule
4. Define the operations to be audited
5. Determine audit scope
6. Prepare audit checklist
7. Inform employees to be audited
8. Implement auditing
9. Prepare the audit summary report
Identify points of nonconformity in procedure implementation
Increased efficiency and effectiveness
1
Select procedures or departments whose operations are to be audited
Figure 1: Impact of operational audit on increasing customers’ satisfaction
This step is considered the basic stage in which the procedures or departments whose operations are to be audited are selected, which significantly affects all subsequent steps of the auditing process. This is accomplished by using the following criteria: The audit added value: it refers to the impact that will result from improving the implementation of the procedure
What is Operational Audit?
Operational Audit is a methodology for assessing the conformity of implementing the procedures and methodologies set forth in the department’s instructions, regulations or documents. Operational audit is performed by specialized auditors. Upon completion of the auditing process, a report of findings with recommendations is submitted. Operational audit contributes to improving implementation, complying with the government organizations’ procedures and providing the management with points of nonconformity so that corrective and preventive actions can be taken, thereby improving the efficiency and effectiveness of operations and increasing customers’ satisfaction, as shown in Figure 1.
Operational Audit Corrective actions by the management Increase customer satisfaction 10. Follow up
- How to conduct Operational Audit? to increase Enable management to identify ways operational control.
1. Select procedures or departments whose operations are to be audited
2. Determine audit objectives
3. Select the audit team and determine the schedule
4. Define the operations to be audited
5. Determine audit scope
6. Prepare audit checklist
7. Inform employees to be audited
8. Implement auditing
9. Prepare the audit summary report
Identify points of nonconformity in procedure implementation
Increased efficiency and effectiveness
1
Select procedures or departments whose operations are to be audited
Figure 1: Impact of operational audit on increasing customers’ satisfaction
This step is considered the basic stage in which the procedures or departments whose operations are to be audited are selected, which significantly affects all subsequent steps of the auditing process. This is accomplished by using the following criteria: The audit added value: it refers to the impact that will result from improving the implementation of the procedure