How to Be Operational Auditor - Job Description, Skills, and Interview Questions

Jul 11, 2020 / 6 Minutes Read / By Albert

How to Become

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The operational auditor is a critical role in any organization as they are responsible for identifying potential risks and inefficiencies. By evaluating business processes and policies, they can detect negative trends which may cause major financial losses or threaten the success of the company. This in turn leads to improvements in the overall efficiency of the organization, including better use of resources and improved compliance with applicable laws and regulations.

Operational auditors generally utilize data analytics, financial analysis, and other specialized tools to assess the effectiveness of an organizations operations and management structures. The findings from these audits can also be used to ensure that the organizations financial statements accurately reflect the true state of the business. these audits can help to identify areas where the organizations operations could be improved or strengthened, such as developing stronger internal control systems or implementing more efficient processes.

the operational auditor is a key partner in ensuring the long-term success of the company.

Steps How to Become

Earn a Bachelor's Degree. To become an operational auditor, you must first earn a bachelor's degree in accounting, finance, business administration or a related field. You may want to look for programs that offer courses in auditing, as this will give you an advantage when seeking employment.
Obtain Professional Certifications. Professional certifications are not mandatory to become an operational auditor, but they can help enhance your credentials and make you more attractive to potential employers. The Association of Certified Fraud Examiners offers the Certified Fraud Examiner credential, and the Institute of Internal Auditors offers the Certified Internal Auditor certification.
Gain Work Experience. Employers often require at least two to three years of experience in accounting, auditing or finance before they will hire an operational auditor. You may be able to gain this experience through internships or volunteer work while you are still in college.
Pursue Advanced Education. If you want to advance your career as an operational auditor, you may want to pursue a master's degree in accounting or a related field. This can help you qualify for higher-paying positions and increase your chances of promotion.
Stay Up-to-Date. As technology advances, operational auditors must stay up-to-date on the latest trends and techniques. Attend seminars and conferences, read industry publications and join professional organizations to stay ahead of the curve.

To become an operational auditor, it is essential to gain knowledge and expertise in various fields. Having a strong background in accounting and finance is important as it helps to understand financial statements and identify potential areas of risk. having a deep understanding of internal controls, risk management, and process improvement are essential skills for an effective operational auditor.

Furthermore, knowledge in data analytics, information systems, and IT security can be extremely useful as they provide the auditor with the tools needed to review operations and identify any anomalies. Finally, having strong communication and inter-personal skills are essential for the auditor to effectively collaborate with management, discuss their findings, and ensure the organisation is taking the necessary steps to improve its internal control environment. By developing these various skills and expertise, an operational auditor can become highly skilled and efficient in their role.

You may want to check Financial Reporting Auditor, Accounts Auditor, and Senior Information Systems Auditor for alternative.

Job Description

Develop audit plans, procedures, and programs to assess risks and controls in the organization
Identify areas of potential improvement and suggest internal control enhancements
Prepare audit reports to summarize findings and recommend corrective action
Research and analyze financial information to assess the accuracy and completeness of records
Evaluate internal control systems to ensure compliance with government regulations, industry standards, and company policies
Monitor changes in laws, regulations, and accounting standards to ensure compliance
Evaluate operational processes and procedures to identify inefficiencies
Interview staff to obtain information regarding their activities, processes, and controls
Review management reports to identify discrepancies or deviations from accepted practices
Monitor managements response to audit findings and suggest corrective action if necessary

Skills and Competencies to Have

Knowledge of audit principles and practices
Strong analytical and problem-solving skills
Excellent communication, interpersonal and organizational skills
Ability to work independently with minimal supervision
Ability to interpret and apply complex regulations
Proficiency in computer applications, including word processing, spreadsheets, and databases
Knowledge of financial accounting and auditing standards
Knowledge of internal control systems
Knowledge of information systems, computer networks, and data processing
Ability to think strategically and develop creative solutions to complex problems
Ability to work effectively with a variety of stakeholders, including management, staff, and external organizations
Ability to explain and present audit findings to stakeholders
Knowledge of risk management principles and practices

Operational auditing requires a combination of technical, analytical and communication skills. The most important skill to have is the ability to think critically and analytically. This involves the ability to identify potential problems, analyze financial data and identify solutions.

Auditors must also be well-versed in business operations and processes, as well as the applicable laws and regulations. Good communication skills are also essential to ensure the auditor can effectively communicate their findings to senior management. operational auditors need to possess strong interpersonal skills in order to build relationships with stakeholders such as employees and customers.

Finally, auditors must be able to develop action plans and actionable recommendations to help the organization reduce risk, improve efficiency and increase profits. All of these skills are necessary for operational auditors to be successful in their role.

Quality Auditor, Senior Cost Auditor, and Senior Government Contract Compliance Auditor are related jobs you may like.

Frequent Interview Questions

What operational auditing experience do you have?
How do you stay up to date on industry regulations and laws?
Describe a time when you identified an area of improvement in an operational audit.
How do you ensure accuracy and reliability of audit results?
What methods do you use when analyzing data for an operational audit?
What challenges have you faced during an operational audit, and how did you work to resolve them?
How do you ensure that all aspects of an operational audit are properly documented?
Describe a time when you successfully identified a potential fraud scheme during an operational audit.
What types of internal control systems have you reviewed during an operational audit?
Describe your approach to evaluating the effectiveness of an organizations internal policies and procedures.

Common Tools in Industry

Risk Analysis Software. This software helps assess the potential risks associated with certain organizational processes or investments. (eg: SAP Risk Management Suite)
Compliance Auditing Software. This software helps organizations comply with government regulations and industry standards. (eg: Compliance Auditor)
Financial Analysis Software. This software helps analyze financial data to measure the performance of investments, optimize budgets and more. (eg: QuickBooks)
Data Analytics Software. This software helps analyze large amounts of data to uncover trends, identify areas of improvement and more. (eg: Microsoft Power BI)
Audit Management Software. This software helps automate the audit process, from planning to execution to reporting. (eg: MetricStream Audit Management)
Project Management Software. This software helps teams collaborate on tasks, track progress and manage resources. (eg: Microsoft Project)
Data Security Software. This software helps organizations secure their data by deploying strong encryption algorithms and other security protocols. (eg: Symantec Data Loss Prevention)

Professional Organizations to Know

The Institute of Internal Auditors (IIA)
The Information Systems Audit and Control Association (ISACA)
The American Institute of Certified Public Accountants (AICPA)
The Association of Government Accountants (AGA)
The Institute of Management Accountants (IMA)
The Chartered Institute of Internal Auditors (CIIA)
The Institute of Certified Management Accountants (CMA)
The Institute of Financial Professionals (IFP)
The Institute of Operational Risk (IOR)
The International Association of Internal Auditors (IIAA)

We also have Government Contract Compliance Auditor, Environmental Compliance Auditor, and Network Security Auditor jobs reports.

Common Important Terms

Internal Audit. A systematic and independent examination of the activities of an organization to determine the accuracy and reliability of financial and operational information and adherence to established policies and procedures.
Sarbanes-Oxley Act. A federal law that establishes standards for public company audits and sets forth requirements related to corporate governance.
Financial Statement Audit. An examination of a company's financial statements by an independent external auditor to determine whether they present a fair and accurate view of the company's financial performance.
Risk Management. The process of identifying, assessing, and controlling potential risks to an organizations operations, assets, and reputation.
Compliance Officer. An individual responsible for overseeing an organizations compliance with legal and regulatory requirements.
Quality Control. The process of ensuring that products and services meet predetermined standards of quality.

Frequently Asked Questions

Q1: What is an Operational Auditor? A1: An Operational Auditor is a professional who reviews and evaluates the effectiveness of an organization's internal processes and operations to ensure compliance with applicable laws and regulations. Q2: What skills are necessary to be an effective Operational Auditor? A2: An effective operational auditor should have strong analytical, problem-solving, and communication skills. Additionally, they should be proficient in accounting, finance, and auditing standards and procedures. Q3: What are the primary duties of an Operational Auditor? A3: The primary duties of an Operational Auditor include reviewing financial records, analyzing data, assessing risk factors, identifying areas of non-compliance, and providing recommendations for process improvement. Q4: What qualifications are required to become an Operational Auditor? A4: To become an Operational Auditor, individuals must typically possess a degree in accounting, finance, or a related field. Additionally, professionals must obtain professional certification from a recognized auditing organization such as the Institute of Internal Auditors (IIA). Q5: How long does it typically take to become an Operational Auditor? A5: The amount of time needed to become an Operational Auditor varies depending on the individual's educational background and experience. On average, it may take between two to five years to become fully qualified.