Operational Audit in UAE

Operational Audit

operational audit is concerned with the evaluation of systems and controls which ensure that the strategies, goals and objectives of the management are being met. The management cannot simply take the decisions and sit folded hands and wait that the objectives will be achieved. Some activities or operations need to be carried out for materializing decisions into goals. These activities or operations may include recruitment, finance, marketing and production etc. In common Operational auditing is a logical extension of internal auditing which covers the operational areas of the business besides the traditional accounting and financial operations.

Types Operational Auditing

• Functional Audit: it is concerned with the one or more functions in an organization. It has the advantage of permitting specialization by the auditor but it fails to evaluate interrelated functions of the company.
• Organizational Audit: this type of auditing deals with an entire organizational unit such as departments, branch or subsidiary. It emphasizes how efficiently and effectively functions interact.
• Special Assignment: in operational audit, special assignments arise at the request of management.

Importance of operational Audit for an Organization

• Appraisal of controls: the operational audit helps an enterprise in evaluating its controls i.e. accounting controls, administrative controls, and business controls
• Evaluating the performance: the auditor assesses the key performance indicators to appraise the performance of the enterprise.
• Appraisal of objectives and plans: the operational audit team will critically evaluate the key objectives and plans of the organization and put make all the efforts to achieve the objectives.
• Appraisal of organizational Structure: the operational audit team will analyze the line of relationship and delegation of authority and tasks.

Operational Audit is the review of how an organization’s management and its operating procedures are functioning with respect to their effectiveness and efficiency in meeting the common objectives. Operational audit provides a bridge to the higher levels to ensure that the system which was put in operation by the senior management is operating effectively and finding results. Emirates Chartered Accountants Group Dubai provides all kinds of auditing services under United Auditing.

For further information, email us about your requirements in Operational Audit

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Pradeep Sai | Partner
Mob: +971 556530001
Email: sai@emiratesca.com