An operational audit is an audit that tests a thoroughly checks a company’s internal systems and procedures. This is done to see what types of goods and/or services the company provides and sells to their consumers. An operation audit is also used to ensure that the company is operating efficiently and effectively. Operation audit can be conducted by employees of the company or by an outsourced company.
A quality audit is a systematic examination of the quality of a specific company or organization. Carried out by either a company’s employee or an outsourced auditor, a quality audit is an important aspect of a company because it helps to ensure an effective management system and instill a specific quality system to be used by the company.
Generally a quality audit is scheduled so that the management of the company can use their internal system which in turn will help to determine if the company is complying with the said rules and regulations that they are supposed to be following.
A tax audit is an investigation of tax returns that have been submitted. A tax audit can be done on random sampling or due to certain questions the tax agency may have after looking at the tax return. A tax audit can help to uncover hidden incomes and other fraudulent acts regarding money.
Regardless of what type of audit one is experiencing, audits can be a key management tool and can help to determine that the necessary actions of the company are actually happening. Often business, small and large, loose site of different things and tend to misplace or misuse important documents and/or funds. An audit can refocus a company and help aid them back on track.