OPERATIONS AUDITS

The overall goal of an audit process is to provide the management team with practical and strategic recommendations to:

• Identify cost saving opportunities,

• Identify revenue enhancement opportunities,

• Overcome risks and take advantage of opportunities

Operational audits review the operation of your business to identify potential improvements in efficiency and effectiveness looking at control procedures, key performance indicators and management systems. Working closely with departmental management when conducting these audits, we provide an independent assessment of business processes, as well as making recommendations to ensure appropriate procedures for efficiency, managing risk and increased control are achieved.

Operational audit is designed to:

• understand the responsibilities and risks faced in each department;

• assess the level of control exercised by management;

• identify, with management participation, opportunities for improving control;

• provide senior management with an understanding of the degree to which management has achieved its responsibilities limiting the risks associated with the operation of their departments

Normally, this involves the following six phases:

1) Pre-audit process

2) Facilitation of Risk Assessment meeting

3) Controls

4) Control analysis

5) Report drafting

After the previous stages have been completed, the auditor can produce a draft report to be presented and discussed with management. The draft report uses the following standard structure:

6) Final audit report

The final report is distributed to all managers of an audited unit and relevant members of senior management.

A successful operational audit helps managers make decisions.  Recommendations may highlight process improvements saving money or time.  Some may provide suggestions for generating additional revenue yet they are always completed in collaboration.