Operational Audit is a systematic process of evaluating an organization’s operational efficiency and effectiveness. On completion of operational auditing, the results of the evaluation and the recommendations for improvements will be reported to the management for action. It means that the internal auditor goes beyond the financial controls into the operating areas which are focused to strengthen the Organization’s operations and control mechanism for day to day operations. Operational audit will help to identify points of non-conformity in procedure implementation. It will help the management to take corrective actions.