Operational Audit Service in Dubai

Operational Audit Service in Dubai, UAE

Operational audit is a method of assessing a company’s operational efficiency and performance. The results of the review and recommendations for improvements will be given to management for action when Operational Auditing is completed. It indicates that the internal auditors examine aspects other than financial controls, such as operations. Its main goal is to improve the Organization’s day-to-day operations and control mechanisms. Operational auditing will aid in the detection of non-conformities in procedure execution. It will assist management in taking corrective measures.

Objectives of Operational Auditing in Dubai, UAE

  • Some of the objectives of Operational Auditing are:
  • Review of the firm’s policies, procedures, and action plan
  • In order to increase profitability
  • To ensure that control systems are in place to guarantee that existing processes are effective.
  • Performance is measured in terms of productivity and the current workforce.
  • Encourage companies to take on social duties.
  • DUE DILIGENCE AUDIT
  • IFRS ADVISORY SERVICES
  • FORENSIC AUDIT SERVICES
  • FRAUD INVESTIGATION AUDIT SERVICES

Is Operational Audit a Statutory Compliance?

There is no statutory compliance for a business to undertake an operational audit. When management wants to assess the firm’s operational efficiency and effectiveness, they conduct an operational audit. It aids management in increasing the cost-effectiveness of financial processes that rely on financial statements.

Objectives of Operational Auditing in Dubai

Steps Involved in Operational Auditing

Roles and Responsibilities

The CEO and/or General Manager have major responsibility for managing day-to-day operations. However, the Process Owner/Line Manager in charge of that process or operation will be responsible for each specific function or process covered by Operational Audit.

Steps Involved in Operational Auditing

  • Understanding the company’s organisational structure and operational hierarchy.
  • Understanding each function/existing process’s Policies, Procedures, and manuals one by one.
  • Application of already defined policies and procedures through a walkthrough or field inspection.
  • Examining the present processes for any gaps or loopholes.
  • Recommendations to Management for bridging the gaps and implementing internal controls (where none exist).
  • With the provided measures and guidelines, ensure a seamless flow of activities.
  • To conduct a follow-up audit to assess the operation’s operational efficiency.
Activities of Operational Auditing

The auditor is capable of appraisal activities in a programme of operational auditing, with specific reference to the following aspects:

  • The degree to which top management has succeeded in ensuring that all phases of organisational activities are aimed at increasing profits.
  • Methods for reducing waste and loss by identifying bottlenecks or potential danger spots between line and executive management, as well as between other levels of staff.
  • Deviations from the policy and objectives established at the start.
  • To overcome negative outcomes and conditions, corrective action is required.
  • Personal performance evaluation.
  • Program to reduce costs.
  • Physical-operations-related issues.
  • Examine the operating departments’ goals, as well as how they are met and how the results are evaluated.
  • Examine scrap, salvage, and typical and anomalous waste.
  • Control and planning of production.

Activities of Operational Auditing

Reporting and Discussion

Reporting and Discussion

Management should find the reports to be quite helpful and accommodating. The operational Audit report details the observations, the auditor’s suggestions for the reported observations, management actions, the process owner’s responsibilities, and the goal date for the observation’s closure. This report should be thoroughly addressed with management and the process owner in order to assist managers in evaluating and analysing the existing efficacy of a company’s operations as well as finding opportunities for development.

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