Performance Auditing Success is All in the Design - Chapters Site

Prepared by:
Date Prepared:
Reviewed by:
Index:
Job Title:
Audit Tool: Assessing Audit Risks and Significance (GAS 7.11 through 7.36)
A.1 Design and implementation of
internal controls (GAS 7.11b, 7.16)
Yes No N/A w/p reference or auditors notes if
appropriate
Did the department design and implement
policies and procedures for managing the
program?
Does the department establish and review
performance measures?
Does the department accurately and timely
record documentation?
Are separations of duties established
appropriately?
Is the department properly safeguarding
program resources and funds against
unauthorized acquisition, use, or disposition
by employees, contractors, grantees, and
recipients of program benefits
Is the department properly monitoring
program activities such as contractors for
performance and value of service provided?
A. 2 Design and implementation of
information system internal controls
(GAS7.11c; 7.24; 7.27)
Are information systems used extensively
throughout the program under audit and/or
for fundamental business processes related
to the audit objectives?
Is an understanding of information systems
controls necessary to assess audit risk and
plan the audit within the context of the audit
objectives?
Are information systems controls
significant to the audit objectives and
therefore necessary to evaluate in order to
obtain sufficient, appropriate evidence?
Are audit procedures related to information
systems controls needed to obtain sufficient,
appropriate evidence to support the audit
findings and conclusions?
B. Potential for fraud and abuse (GAS
7.11d; 7.30)
Has the audit team become aware of
abuse that could be quantitatively or
qualitatively significant to the program
under audit?
In the team judgment, is the program or
activity covered by the audit objectives
susceptible to a significant risk of fraud
from misappropriation or misuse of
assets, or misstatement of program
information in order to obtain
government benefits?
√
√
√
√
√
Policies and procedures are highlighted in
the Service Level Agreement with
Department.
Performance measures are established in
the Service Level Agreement, but
frequency of review is not included.
We found time lags with the project
management system. Additionally, we
found the system is dependent on project
managers to input and this has been done
inconsistently.
Preliminary review suggests some
duplication of efforts.
We don’t have reason to believe they are
not, but will review this issue.
√
Departments discuss program activity and
custom update reports are provided
monthly.
Yes No N/A w/p reference or auditors notes if
appropriate
√
√
√
Note: Primary information systems used
are….
Note: Audit staff will be provided with
information system training prior to
fieldwork.
Audit staff will review financial systems
controls to prevent input error.
√
Audit staff will test financial systems
controls to prevent input error using
quantitative methods.
Yes No N/A w/p reference or auditors notes if
appropriate
√
√
The team has not been made aware of
waste, fraud or abuse to obtain government
benefits during our survey phase.
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