Discussion Assignment Week 1
What is Operational Auditing and how it can affect your profession and business all over the world?
An operational audit is an examination of the manner in which an organization conducts business, with
the objective of pointing out improvements that will increase its efficiency and effectiveness. This type
of audit is substantially different from a normal audit, where the objective is to examine the adequacy of
controls and to evaluate the fairness of presentation of the financial statements (Accounting Tools,
2019).
Operational audits are usually conducted by the internal audit staff, though specialists can be hired to
conduct reviews in their areas of expertise. The primary users of the audit recommendations are the
management team, and especially the managers of those areas that have been reviewed.
Operational Auditing is distinct to other type of auditing. According to the website of Process.st, an
operational audit systematically and independently analyzes an organization’s operations to evaluate
operation effectiveness, efficiency, and economy, with a future-orientated perspective. Additionally,
there three main objectives of operational auditing are as follows: Improve business operations via
analyzing managerial, administrative and operational aspects. Make appropriate modifications. Support
the processes with the greatest need for modification. Identify areas where cost reductions can be
made. Identify shortcomings in time and money to transform an activity into a profitable process.
On the other hand, as a 3rd Year Bachelor of Science Accountancy Student, one of the major topics that
you need to learn is auditing. As we all know, auditing does have different classification, but I would
focus to Operational Auditing.
This classification of auditing affects my profession in the future as a Certified Public Accountant. Being
able to learn the operational auditing is vital and significant to my profession. It gives me a chance to
become an operational auditor since I want to become an auditor in Bureau of Internal revenue
someday.
With regards to the effect of operational auditing in the business all over the world. I would rather say
that every business should have an operational auditing running on their internal system. This allows the
entity to identify, support and improve the shortcomings of the limited resources. As a result, the entity
can utilize the concept of operational auditing to achieve their objectives and goals.
References:
Courtnell,J. (2020). Operational Audit: Best Practices Used by the Experts. Process.st. Accessed
October 1,2021.https://www.process.st/operational-audit/#operational_audit_integration
Accounting Tools. (2020). Operation Audit Definition. Accessed October 1,2021.
https://www.accountingtools.com/articles/2017/5/9/operational-audit
