What is the primary objective of an operational audit?

The primary objective of an operational audit is indeed to ensure optimal functioning of management at all levels. This type of audit focuses on the efficiency and effectiveness of operations, assessing how well the organization meets its operational goals. It examines processes, procedures, and practices to identify areas for improvement and to make recommendations that will enhance operational performance. The intent is not just to identify deficiencies but also to find opportunities for better management practices and resource utilization.

In contrast, while monitoring financial performance, evaluating compliance with laws, and detecting fraud are important aspects of other types of audits (like financial audits or compliance audits), they do not encapsulate the broader focus of an operational audit. It is specifically concerned with how resources are used to achieve operational objectives and provides insights that help organizations streamline operations and improve overall productivity.