Glossary · O
Operational Audit
A structured review of operational processes
What it means
An operational audit examines how work is carried out to identify inefficiencies, bottlenecks and risks. It can combine interviews, document review, observation and analysis of system data. The methods depend on the questions being investigated and the evidence available.
What it means for a business
A company with rising revenue but declining margins can review order handling, production or customer service. Comparing activity costs, waiting times and exceptions helps it choose improvements and identify what needs further investigation.