Download - Operational Audit - Group 5
Operational Auditing…
GROUP MEMBERS
Annisa Amanda – 008201100020
Meilany Ng – 008201100046
Yosi Erlangga Gito Jaya – 008201100024
Indah Nurhidayah – 008201100054
Novalia Dewi – 008201100099
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Operational Audit is a systematic review of effectiveness, efficiency and economy
(3Es) of operation.
DEFINITION
OBJECTIVES
3E’s (Economically, Effective, Efficiency).
To understand the responsibilities and risks faced by an organization.
To identify, with management participation, opportunities for improving control.
Detailed understanding of the operations.
OBJECTIVES
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ROLE OF AUDITOR
The Auditor preparing for an
audit report on the conclusion of an
operational audits is required to
include several considerations.
ASPECT OF AUDIT SUMMARY PREPARATION
Objective of audit should be clear.
Complete scope of work covered by audit.
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Action steps, professional standards and policies
adopted.
Result of audit (this must include all points of
nonconformity).
Comments of management and summary of views
expressed by rational experts.
Any sensitive or confidential information, which
has been deleted.
ADVANTAGES & DISADVANTAGES
Time
Costly
Pending operation
activities
Adaption
DISADVANTAGES
ADVANTAGES
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Efficient and Profitable
Provides new perspective
Problem awareness
Motivation
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STEPS OF OPERATIONAL AUDIT
Preliminary Preparation
Field Survey
Audit Program
Development
Reporting and Follow
Audit Execution
EXAMPLE IN THE RESTAURANT
ECONOMY: Following the sound procurement practices
Overstaffed as related to performing necessary
functions
Allowing excess materials to be on hands
Using equipments that are more expensive than
necessary
Avoiding the waste of resources
EFFICIENCY
Improper use of manual and
computerized procedures
Inefficient cooking workflow
Inefficient operating systems and
procedures
Cumbersome organizational hierarchy
and/or communication patterns
Duplication of effort
Unnecessary work steps
EFFECTIVENES
✓
✓
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✓
Appraisal of the organizational planning system as to its developmentnof realistic goals, objectives, and detailed plans
Determination of the extent to which results are achieved
Assessment of the adequacy of management’s system for measuring effectiveness
Identification of factors inhibiting satisfactory performance of results
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