REVIEWER effectiveness of the

operation.
 Operations auditing is most likely
conducted by the Internal
 Operational audits:
Auditors of an organization and
appropriateness of organizational
this is also part of the
structure
performance audit which is
 poor structure does not
conducted by the government
flow accurately and have
auditors in their respective
an impact in achieving the
assignment.
goals and objectives of the
organizations.
 Commission on Audit (COA) -
 purpose of operational auditing is
performance audit whether it is a
to improve the profitability of
process, projects, programs and
the organization and the
activities.
attainment of organizational
objective.
 Operational Auditing is a future-
 The organizational objectives of
oriented, systematic, and
the organization can be achieved
independent evaluation of
by defining the goals of the
organizational activities
management, setting
 organizational objective is
appropriate strategies, and
the primary source of
having enough and competent
evidence rather than the
staff in the organization.
financial data
 assessment of procedures
 Internal auditing (IIA) is defined
and methodologies in
as an independent, objective
conformity with the
assurance and consulting activity
department’s instructions,
designed to add value and
regulations or documents
improve an organization's
and performed by the
operations. It helps an
specialized auditors
organization accomplish its
 review of key processes,
objectives by bringing a
procedures, system, as
systematic, disciplined approach
well as internal control and
to evaluate and improve the
the main objective is to
effectiveness of risk
improve productivity, as
well as efficiency and
 management, control, and to attain the business goals
governance processes and objectives.
 KEY WORDS AND TERMS  Designed to add value –by
 Independence – recommending changes in
Independence is the various process that may
freedom from conditions hamper the operations as
that threaten the ability of well as achieving the goals
the internal audit activity and objectives of the
to carry out internal audit organizations
responsibilities in an  Improve an organization’s
unbiased manner. operations – Internal
 Objectivity - Objectivity is Auditing is focused more
an unbiased mental on improving operations to
attitude that allows enhance efficiency,
internal auditors to effectiveness and
perform engagements in economy.
such a manner that they
believe in their work  future threats and vulnerabilities
product and that no  Operational - maintaining
quality compromises are operational capacity, cycle
made time, human resources
 Assurance – it refers to the management, such as
ability of the internal employee motivation and
auditor’s to give knowledge transfer as well
confidence and have an as system development,
impact regarding the and implementation
condition of matters within  Technological- such as
the organization and it hacking, obsolescence,
referred to “compliance” systems development and
which is the traditional business continuity due to
focus of internal auditors. personnel turnover.
 Consulting - means giving  Strategic – refers to
advice to management and mergers and acquisitions,
conducting an activity that customer loyalty,
helps organizations in customer and vendor
resolving business issues relations and outsourcing
of some services. ”changed
 the fundamentals” that
drive overall social and/or
operating objectives,
strategies and, in the
extreme, result in failure of
the operations.
 Environmental –
compliance with
environmental laws and
regulations prescribed by
the authorities.
 Benefits of the Organizational
Auditing
 The Individual can
continuously improve their
ability to apply knowledge
and skills to deliver the
intended results.
 The End User or Consumer
receives a more cost
efficient and high-quality
products or services
 The World benefits from a
better, more sustainable
future.
 FIVE PRIMARY GOALS OR MAIN
ADVANTAGES
 Influence Positive Change
 Review Internal Controls
 Understand Risks
 Identify Improvement
Opportunities
 Inform Senior
Management
 THE SKILLS REQUIRED FOR
EFFECTIVE OPERATIONAL AUDITS
a. Communication skills
b. Problem identification skills
c. Accounting framework, tools and
techniques
d. Industry, regulatory and standards
changes
e. IT/CT Framework, tools and
techniques
f. Organizational Skills
g. Ability to promote value of internal
audit
h. Conflict resolution/negotiation skills
i. Cultural fluency and foreign language
skills
j. Staff training and development
k. Change management skills
 three common core
competencies identified in the
report are communication skills,
problem identification and solving
skills,
 keeping up to date with industry
and regulatory changes and
professional standards results
highlight the importance of
individual and team
competencies and the role they
play in team effectiveness