Module 4 - Introduction to Performance Audit_4B
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Establish current<br />
performance:<br />
• Select audit subject<br />
• Select comparison<br />
entities or locations<br />
• Apply<br />
measurements for<br />
both subject and<br />
selected<br />
comparison<br />
(benchmark)<br />
Identify<br />
opportunities for<br />
improvement<br />
• Compare<br />
measurements of<br />
subject and<br />
benchmark<br />
• Estimate the effect<br />
• Discuss with<br />
management for<br />
possible causes<br />
Collect data on<br />
causes and<br />
solutions<br />
• Map key processes<br />
• Collect data on<br />
differences<br />
between subject<br />
and benchmark<br />
• Identify best<br />
practices and<br />
barriers<br />
• Test managementasserted<br />
causes<br />
Recommend<br />
improvements<br />
• Communicate<br />
findings and solicit<br />
comment<br />
• Identify potential<br />
solutions and make<br />
recommendations<br />
Process for Benchmarking Approach in <strong>Performance</strong> <strong>Audit</strong>s 67<br />
<strong>4B</strong>.6: Reflection<br />
What steps are followed <strong>to</strong> establish appropriate criteria for performance audits?<br />
How do these differ from similar steps for other kinds of audit engagements?<br />
What are the risks involved in selecting audit criteria and how can these be managed?<br />
67<br />
See Rauum and Morgan, <strong>Performance</strong> <strong>Audit</strong>ing: A Measurement Approach, The Internal<br />
<strong>Audit</strong> Research Foundation, 2009.<br />
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