What is operational auditing?

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The Answer is Operational auditing is often referred to as management auditing or performance auditing in the private sector, and as comprehensive auditing, value-for-money auditing, systems auditing, or efficiency auditing in the public sector. Operational auditing examines the general effectiveness and efficiency of processes in an organization. There is a great deal of diversity in the subject matter of these audits. Operational audits can focus on either activities within an organization (e.g., payroll processing or plant maintenance) or separately identifiable divisions or locations (e.g., a branch office or manufacturing plant). An operational audit requires clear criteria for assessing efficiency and effectiveness. Because every engagement is unique, the criteria must be developed for each situation, usually in consultation with client personnel.

What Is Operational Auditing