Audit Assignment Planning Performance Audit

8/10/2019 Audit Assignment Planning Performance Audit

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PLANNING FOR AN

AUDIT ASSIGNMENT


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Steps in PlanningUnderstanding entity objectives, operations and control structure etc.

Identification of risks composite risk consideration

Risk grading and auditabilityconsiderations

Audit Program on each selected risk Audit criteria and audit steps

Reviews and approvals at appropriatelevels


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Steps in Planning PA

Approval of audit assignment plan

Preparation of an audit assignment plan

Decision to proceed or abandon audit

Preparation of a preliminary survey report


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PSR

Objectives of PSR

To understand the audit entity, determine the objectives andscope of audit and identify Issues of Potential Significance to make an initial assessment whether the audit office should

continue with the audit in question keeping in view theauditability of the entity and possible value addition by audit

In case the FAO is confident about the valueaddition and auditability there will be no need offormal PSR.


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PSR Salient Features

Familiarization with the

Objectives and operations of the entity Expected outputs, outcomes and impact Key internal controls

Define Audit Objectives - extent of audit examination for PAobjectives are normally 3Es , there may be other objectives regardingother Es or relating to other type of audit in case of integrated audit

Determine Audit Scope identifying Issues of Potential Significance


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Considerations for Going Ahead

Existence ofeffectivenessrelated issues

Auditability ofselectedissues

Extent ofvalue addition


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Critical Points in PA Planning

Should be effectiveness related issues incase of PA. Issues relating to economy andefficiency are treated in PA only if auditableeffectiveness related issues are present

IPS related toeach AuditObjective

If devised by the auditor it should have beenagreed by the entity.

Audit Criteriarelated toeach IPS

Reliable and complete data should beavailable to carryout audit tests

Sources ofinformation


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Audit Assignment Plan

When the PSR has been approvedand the decision to continue with theaudit has been taken;

When PSR is not required by virtue ofthe fact that the FAO has detailedknowledge about the audit assignmentor because the AGP has finallydecided to conduct this audit anyway.

This work isundertake

in thefollowing

situations:


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The assignment audit plan is amajor tool for controlling,

monitoring and managing the

audit by the seniormanagement.

Accountability of the audit teamis determined with reference tothe assignment audit plan.


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assignment plan comprises

audit objectives audit scope audit approach

IPS and related criteria Audit team the budget and scheduling of the audit


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Audit Objectives

The Auditor In-charge should re-visit ???? thePSR, if prepared, and see if the objectives can beadopted as defined at the time of PSR or wouldthey require some modification. In any case, this isthe time to firm up the audit objectives finally.

If the DG decides that the performance auditassignment should focus on certain areas ofcompliance audit or study certain problem areas indetail, the audit objectives should specify thesematters clearly.


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Audit Scope

Audit scope refers to the extent of auditcoverage in terms of

time period, stage of the project of program or organization, the locations and facilities to be included in audit

coverage and any aspect which will not be covered

with reasons for exclusion. Audit scope determines the responsibilityof the audit team in the assignment


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PA Criteria

In performance auditing, the auditors have to laydown audit criteria for each issue of potential

significance.

It is unlike financial auditing where the audit criteriaare determined by standard practices.

In performance auditing, there is no single source ofaudit criteria. The auditors have to undertake a sortof research to determine the benchmarks againstwhich they would assess the performance of the

auditee.


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PA CriteriaIn developing/selecting audit criteria following sources maybe reviewed

Objectives of the organization, project or program Generally accepted management practices Past performance standards Standard operating procedures (SOPs) of the organization Rules and regulations applicable to the organization Sector studies Comparison with similar organizations, projects or programs State-of-the-art studies Academic pronouncements of the profession Performance specifications of manufacturers of an

equipment


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PA Criteria

Good practice inperformance auditingrequires that the audit

criteria be sharedwith the auditee

management and

their agreementobtained at this stageof planning.


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Audit Program

The audit program is a written plan for execution ofan audit assignment.

It consists of audit procedures to be followed duringthe audit execution phase. The audit program is a

guide for systematic fieldwork.

It is, at the same time, an effective tool ofsupervision for ensuring that the auditors followappropriate procedures and the work is completed

according to the planned schedule and in a mannerthat achieves audit objectives.


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Audit Program

Unlike financialauditing, standardready-to-use audit

programs do not existfor performance

auditing. For eachperformance audit

assignment a tailor-made audit programhas to be written.

The Auditor In-chargeis responsible for

developing the auditprogram. The Directorwill review the audit

program and submit itto DG for approval.The field work will

start after approval ofthe audit program by

the DG.


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Program achievements

Program targets arewell identified and

measurable

Reliable andsufficient data is

being generated tomonitor targets

The program shouldachieve its targets as

planned within theestimated time frameand at planned costs


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Waste Collection

Waste should be collected from each waste depot accordingto a collection schedule

The SWM management should locate bins / containers forwaste collection at suitable locations after conducting a studyso that infectious waste is not mixed with other types ofwaste.

Junk shops should be allowed to operate only at designatedareas and after proper licensing.


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Waste Collection

There should be weighbridges for weighingwastes located preferably near the dumpingsites. The weighbridges should be operational

and the staff should maintain record of allwaste weighed on a daily basis.

The cost of collection per ton should beminimum.

Audit Assignment Planning Performance Audit

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