Operational Audit - Group 5

AUDITING SEMINAR – MR. MAIRIZAL CHAIDIRAccounting 2011

OPERATIONAL AUDIT

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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THANK YOU!