Operational audit outsourcing is the practice of engaging an external service provider to perform an independent and objective evaluation of an organization’s operations, processes, and systems. The objective of operational audit is to assess the efficiency, effectiveness, and economy of an organization’s operations, and to identify opportunities for improvement.
The benefits of outsourcing operational audit include accessing specialized expertise, gaining an independent perspective, and enhancing the organization’s ability to manage risks. The outsourcing process typically involves the following steps:
Scope and objectives
LOB’s professionals work with the organization to define the scope and objectives of the operational audit engagement, including the areas to be reviewed, the timing of the review, and the deliverables that will be provided.
Planning
LOB’s professionals develop an audit plan that outlines the methodology to be used, the resources required, and the timeline for the engagement.
Fieldwork
LOB’s professionals conduct the operational audit activities, which typically include interviews, document reviews, and testing of controls.
Reporting
LOB’s professionals prepare a report that summarizes the findings of the operational audit engagement and provides recommendations for improvement.
Follow-up
LOB’s professionals may work with the organization to monitor the implementation of any recommended improvements and provide ongoing support and guidance as needed.
Outsourcing operational audit activities can provide significant benefits to organizations, including access to specialized expertise, increased efficiency, and reduced costs. LOB’s Professionals have the necessary skills and experience to perform the operational audit activities effectively and provide value to the organization. We adhere to professional standards and have appropriate systems in place to protect the confidentiality of the organization’s information.
