What are 'operational audits'?

Operational audits refer to comprehensive reviews that assess the efficiency and compliance of an organization’s operations against established standards. This process involves systematically analyzing various operational processes to ensure they are functioning optimally and adhering to regulations, internal policies, and best practices. The goal of an operational audit is to identify areas for improvement, enhance operational effectiveness, and ensure that resources are being used wisely.

By evaluating the processes, procedures, and performance metrics, an operational audit provides insights into how well an organization meets its operational goals. This can involve everything from workflow assessments to compliance checks, ultimately supporting the overall strategic objectives of the organization.

The other choices do not accurately represent what operational audits entail. Hiring new employees pertains to human resources processes, informal checks for employee performance focus on individual assessments rather than organizational compliance, and a brief overview of financial statements is related to financial audits rather than operations.