Companies, government agencies and nonprofit organizations use auditing practices to manage compliance with internal controls. For example, an auditor looks for inconsistencies in financial records.

The purpose of an operational audit is to improve the efficiency of day-to-day operations, reports Accounting Tools. These activities contribute indirectly to the functioning of the business.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...