What does an operational audit primarily aim to identify?

An operational audit primarily aims to identify areas for improvement in business processes. This type of audit focuses on assessing the efficiency and effectiveness of a company’s operations, looking at work methods, workflows, resource allocation, and overall performance to pinpoint inefficiencies and areas where processes can be streamlined or enhanced. The goal is to help organizations become more productive and reduce waste, ultimately leading to increased profitability and improved service delivery.

While market opportunities for expansion, compliance with safety regulations, and employee performance metrics are important aspects of a business, they fall under different categories of analysis. Market opportunities pertain more to strategic planning and marketing, compliance relates to regulatory audits, and employee performance metrics would be evaluated in performance reviews or human resources assessments. An operational audit specifically hones in on the processes within the organization to foster improvements in operational performance.