OPERATIONAL AUDITING vs. MANAGEMENT AUDITING
Operational Auditing is a subset of internal auditing which is concerned with maximizing
organizational welfare based on reviews of an entity’s activities for efficiency, effectiveness and
economy of any type of activity at any level within the organization. Hence, its focus is activities ratherthan financial assertions.
This term is often used interchangeably with “management audits,” “performance auditing,”and “program results auditing.”
Management Auditing is a subset of operational auditing concerned with harmonious and non-disruptive attempts to measure the effectiveness with which an organization unit is administrated, andwhich concentrates more on effectiveness than on efficiency.efficiency effectivenessOperating efficiency and effectiveness provides the link between the two terminologies.Efficiency is an input measure related to cost control, and performance of recurring functions at
minimum cost while effectiveness is an output measure of productivity in utilizing the entity’s resources
in terms of long-run profitability.
Resource InputsProduct or ServiceOutputsEfficiency Auditing ManagementAuditing