Module 4 - Introduction to Performance Audit_4B

Identify cause.
This is illustrated in the diagram below:
Criteria
Recommendation
Finding
Condition
Effect
Cause
These key terms may be defined as follows:
Elements of Audit Findings
Criteria – what should be found from gathering and processing information about the
topic area.
Condition – what was found.
Effect – the consequences of the condition (likelihood and impacts of resulting risks).
Cause – what gave rise to the condition discovered.
Based on their analysis, auditors can communicate their findings to intended users.
Finding – actual performance (economy, effectiveness, and efficiency) with reference
to the criteria, condition, effect, and cause. Reported findings may be limited to
deficiency or performance below the desired level as defined by the criteria.
In addition, auditors may also provide recommendations for addressing weaknesses and
making improvements.
Information gathering starts at the earliest stages of planning, including the use of any prestudy,
and continues throughout the engagement. The processes described below also
inform the performing stages, beginning in earnest after the planning and preparation. All
data used needs to be checked for sufficiency, relevance, and reliability. Steps for confirming
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