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What Is The Goal Of An Operations And Management Audit?


The goal of an operations and management audit is to help the company create an environment in which the business can be run smoothly and to focus on expanding the profitable sections of the business while discontinuing or reducing less profitable areas.

What Are The Areas Covered By An Operations And Management Audit?

An operations and management audit will cover the company’s organizational structure, strategic planning, safety protocols, production methods, sales, and marketing.

What Will The Auditor Look For In The Organizational Support Portion?

The focus of the audit will be on the structure of the management, the structure of different departments within the company, hierarchies within the company, and reporting methods. The purpose will be to create a structure where everyone understands their position in the company, has an opportunity to provide meaningful input, and contribute to the decision-making process within the company. Allowing everyone to have an appropriate level of input encourages the growth and implementation of ideas that could benefit the company.

Is An Organizational Audit The Same As A Corporate Governance Audit?

An organizational audit and corporate governance audit are the same in closely-held businesses wherein the employees who work on a daily basis are also in charge of the corporate organization. When a company has one set of employees operating the business and a separate set of employees overseeing the corporate decisions, there will be a separate audit for the corporate governance portion, which includes the board of directors, the corporate officers, and the committees that operate under the board of directors at the corporate level. The goal of the corporate governance audit is much the same as the organizational audit, which is to ensure that everyone has the ability to provide appropriate input, and to prevent decision-making authority from falling into the hands of one small group of people.

What Is Included In The Operational Audit?

The areas of focus in an operational audit include the activities of the company, work methods, inventory control systems, purchasing mechanisms, purchasing decision-making processes, strategic planning components, and environmental or regulatory issues that the company faces. The goal is to ensure that the work methods are being undertaken in appropriate and safe ways, that resources are not being wasted, that the workflow is efficient, and that the company is compliant with all safety and environmental regulations.

For more information on Financial Management Audit In California, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (626) 385-6303 today.

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