Operational Auditing Essay Example | Topics and Well Written Essays - 5000 words

useable Auditing - Essay ExampleAn operable audit is a review of any part of an organizations operating procedures and methods for the purpose of evaluating efficiency and effectiveness. At the completion of an operational audit, commission normally expects recommendations for improving operations. An example of an operational audit is evaluating the efficiency and accuracy of processing payroll minutes in a unfermentedly installed computer system. An other(a) example, where most accountants would feel less qualified, is evaluating the efficiency, accuracy, and customer propitiation in processing the distribution of letters and packages by a company such as federal express.Because of the many different areas in which operational effectiveness stool be evaluated, it is impossible to characterize the subscribe of a typical operational audit. In one organization, the auditor might evaluate the relevancy and enough of the information flow in processing sales. In operational aud iting, the reviews are not limited to accounting. They can include the evaluation of organization structure, computer operations, production methods, marketing, and any other area in which the auditor qualified.1The conduct of an operational audit and the reported results are less easily defined than for either of the other two types of audit.effeciency and effectivene... In addition, establishing criteria for evaluating the information in an operational audit is an extremely subjective matter. In this sense, operational auditing is more like caution consulting than what is generally regarded as auditing.Operational Auditing is a non- monetary audit that involves a domineering process of evaluating an organizations (or part of an organizations) effectiveness, efficiency, and economy of operations under managements control, and reporting to appropriate persons the results of the evaluation along with recommendations for improvement. Operational auditing focuses on management goals, initiatives and strategic plans to generate innovative solutions for the challenges that face the units and their managers. The process verifies the existence and effectiveness of management controls that are meant to ensure that the unit meets its operating objectives. The scope of the audit is expanded beyond the verification of financial controls or compliance with policies. Operational auditing looks for the existence of management controls (such as leadership, employee empowerment, teamwork, risk assessment, information, communication, resource allocation, productivity measurement, etc.) that control the financial controls in attaining goals set by the units. Desired results of operational audits include discovering innovative solutions, promoting creativity and new ideas, and recommending operational improvements.EffectivenessBefore an operational audit for effectiveness can be performed, there must be specific criteria for what is meant by effectiveness. Effectiveness is t he degree to which the organizations objectives are accomplished. An example of an