1. What is operations auditing
 An operational audit examines an operating unit or the organization as a whole to
determine how well it is performing. Similar to other auditing, operational auditing
is a systematic process in which an auditor has orderly steps to undergo to evaluate
the effectiveness and efficiency of a company in operations. Particularly, operations
audit focuses on reviewing operational policies and achievements of a company as
primary sources of evidence to assess areas for improvement and make
recommendations for improving its operations. Hernan Murdock
defines operational audit as future-oriented because the findings and suggestions
from the audit will be used for future decision-making and help management make
better decisions and accomplish its objectives. To sum it up,
 Additionally, operational auditors should be independent and provides an
objective evaluation of company’s operations , they assess whether processes are
functioning as intended and identify any deviations or inefficiencie
 An operational audit is a study on how an organization’s activities conducted
effectively and efficiently. Its purpose is to help management in its future
decisions with its objective of assessing the company’s performance and making
recommendations and suggestions on improving its operations.
 identify areas for improvement
 Operational auditing is a systematic process used by organizations to evaluate and
assess the effectiveness, efficiency, and overall performance of their operational
processes, procedures, and systems. The primary goal of operational auditing is to
ensure that an organization's operations are running smoothly, efficiently, and in
accordance with established policies, regulations, and best practices.
 Operations auditing is defined as future-oriented, systematic, and independent
evaluation of organization activities (Murdock, 2022). It is future-oriented because
it examines the company’s performance and assess areas for improvement and
make recommendations for improving its operations which will be used for future
decision making.
 Based on their findings, operational auditors provide recommendations for
improving processes and operations. These recommendations may include
changes to procedures, better resource allocation, enhanced training, and more.
2. Compare operations and financial auditing
 A financial auditing is performed to examine whether financial information
complies with the applicable financial reporting framework. Its primary objective
is to provide reasonable assurance to clients that the financial statement is
presented fairly in accordance with the applicable accounting standards such as
PFRS. On the other hand, operational auditing focuses on evaluating the
effectiveness and efficiency of a company’s operations. Its main objective is to
assess management performance and make recommendations to improve its
operations.
 In summary, while financial auditing focuses on verifying the accuracy of financial
statements, operational auditing assesses the efficiency, effectiveness, and
compliance of an organization's operational processes.