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  • Fire Accidents can easily result in serious human injury and property damage. Fire-related incidents or mishappenings are not always predictable and are often unexpected and sudden. Fire accidents can be caused due to defective smoke detectors, damaged wiring, flawed products. Therefore, it is prudent and necessary for every resident or business to take all the required precautions to avoid fire accidents.
  • The increasing growth in the property sector and its flexible legal system has increased the fraudulent practices in matters related to purchase of property. The Government concerned in this matter has taken steps for prevention of any fire related incidents such as mandating Fire Department NOC for some specific class and also ordered to scrutinise each document of the property before completion of any property deal.

Process of Operational Audit

  • Establishing Objectives: It includes considering the characteristics of products, projects, processes, and any changes to them and Taking into account management system requirements, contractual and legal requirements, and other requirements. It also considers level of performance, risks, previous audit results, and how much the system has developed which is being audited.
  • Establishing the Audit Program: Specifying the role of the auditor and assigning responsibilities to the person. Identification of resources to establish the scope and risks to the organizations.
  • Implementing the Audit Program: Implementing all the objectives and policies formed in the previous steps by assembling an audit team and aligning their tasks accordingly.
  • Monitoring the Audit Program: Assess conformity with the program and then assess the performance of the audit team members and the ability of the audit teams to implement the plan. Program should be changed simultaneously on the basis of the audit findings. Thus making it a real time program.
  • Reviewing and Improving the Audit Program:  The review should consider results in line with procedures, the evolving needs and expectations of stakeholders, records, alternative or new auditing methods, the effectiveness of the measures to address associated risks, and confidentiality and information security issues relating to the audit program.

Difference between Internal Audit and Operational Audit

Internal audits focus on what has happened already. Businesses look at the mistakes that were made and the vulnerabilities in the system which allowed those mistakes to be made. Operational audits are different – they don’t look at whether things were done correctly or incorrectly, they instead look at the possible improvements in the business processes. A process which produces no errors will be considered good in an internal audit. The same process will be considered good in an operational audit if there are no errors, the process is completed in optimal time, and all resources are used efficiently.


Thus, Operational Audit provides a new eye or perspective on the good and not-so-good aspects of business processes. Operational audit results in uplifting spirits of team members and emphasize existing or new goals. Subsequent actions can then lead to greater profitability, legal compliance, and employee satisfaction in the long term.

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