Operational Audit Service in Bahrain
Objectives of Best Operational Audit services in Bahrain are:
- Evaluate the company’s policies, procedures & plan of actions
- Achieve improved profitability.
- Ensure control systems are in place for the effectiveness of existing processes
- Performance measurement in terms of productivity, and existing workforce.
- Encourage corporate social responsibilities.
Activities of Operational Audit
- The extent of top management achievement in ensuring that all phases of organizational activities are directed towards profit improvements.
- Ways and means to eliminate waste or loss by highlighting the bottlenecks or potential danger spots that exist between line and executive management as well as between other levels of personnel.
- Deviations from set-up policy and objectives.
- Corrective action is necessary to get over adverse results and circumstances.
- Assessment of personal performances.
- Cost reduction programme.
- Problems of physical operations.
- Study the objectives of the operating departments-How production is achieved, How assessment of results achieved is made.
- Investigate scrap/salvage/normal and abnormal wastages.
- Production planning and control.
- Understanding the organizational structure & Operational Hierarchy of the Company.
- Understanding the existing Policies, Procedures and manuals for each function/ process one by one.
- Walkthrough or field check of the applications of existing defined policies and procedures.
- Analyzing the gaps or loopholes in the existing processes.
- Recommendations to the Management for bridging the gaps and putting in place (where none exist) the internal controls.
- To ensure the smooth flow of activities with the suggested measures and recommendations.
- Executing a follow-up audit to check the operational efficiency of the operation
There is no statutory compliance for a company to conduct an operational audit. An operational Audit is conducted when Management desires to evaluate the company’s operational efficiency and effectiveness. It helps Management in improving the economic savings of financial processes, where operations are based on financial statements.
The primary responsibility for managing the day-to-day operations is of the CEO and/or General Manager.But for every individual function/process covered under Operational Audit, the responsibility will be of the Process Owner/Line Manager responsible to handle that process or operation.
The reporting should be simple and easy for busy executives to read, absorb, and act on the results of our work. The operational Audit report provides in detail the observations, the auditor’s recommendations to the reported observations, actions to be taken by the Management, the responsibility of the process owner and the target date for the closure of the observation.
This report is to be discussed with the Management and process owner in detail, to help Managers to evaluate and analyze the current operation of the company and identify areas of potential improvement.