operational audit Definition | Business Dictionaries from AllBusiness.com
Facebook Twitter Google+ You Tube RSS Feed

Business Glossary

SEARCH THE BUSINESS GLOSSARY

Business Definition for: operational audit
operational audit

evaluation made of management's performance and conformity with policies and budgets. The organization and its operations are analyzed, including appraisal of structure, controls, procedures, and processes. The objective is to appraise the effectiveness and efficiency of a division, activity, or operation of the entity in meeting organizational goals. Recommendations to improve performance are also made. The primary user of an operational audit is management. However, an operational audit is slightly different from a management audit since it concentrates on the organization. Many companies maintain internal audit staffs for the sole purpose of performing operational audits on a recurring basis. For each review, management receives a report from the audit team that will indicate how well the activities are performed, suggest improvements, and offer other conclusions drawn from the work.

operational audit

process to determine ways to improve production. Contrast with external audit , which relates to financial statements.

Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

Newsletter

Weekly Roundup

Sign up for our weekly Experts roundup, delivered to your inbox each Saturday morning.

Most Recent From our Experts

AllBusiness Experts

AllBusiness Greatest Hits

;
Close

Real Business Owners, Real Business Advice!

Sign up for practical, real-world solutions from successful business owners delivered to your inbox each Saturday morning. FREE.