©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 21Learning Objective 4 Provide an overview of operational audits.. ©2008 Prentice Hall Business Publishin
Trang 1©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 21
Learning Objective 4
Provide an overview of operational audits.
This is trial version www.adultpdf.com
Trang 2©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 22
Effectiveness refers to the accomplishment
of objectives
Efficiency is defined as reducing costs
without reducing effectiveness
Effectiveness Versus Efficiency
This is trial version www.adultpdf.com
Trang 3©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 23
Types of Inefficiency Example
Acquisition of goods and
services is too costly
Bids for purchases of materials are not required
Raw materials are not
available when needed
An assembly line was shut down for lack of materials
A duplication of effort
by employees exists
Production and accounting keep identical records
Effectiveness Versus Efficiency
This is trial version www.adultpdf.com
Trang 4©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 24
Work is done that serves
no purpose
Vendors’ invoices and receiving reports are filed without being used
There are too many
employees
Office work could be done with one less assistant
Effectiveness Versus Efficiency
Types of Inefficiency Example
This is trial version www.adultpdf.com
Trang 5©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 25
Relationship Between Operational Auditing and Internal Controls
Reliability of financial reporting
Efficiency and effectiveness of operations
Compliance with applicable laws and regulations
This is trial version www.adultpdf.com
Trang 6©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 26
Types of Operational Audits
Functional
Organizational
Special assignments
This is trial version www.adultpdf.com
Trang 7©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 27
CPA firms
Government auditors
Internal auditors
Who Performs Operational Audits
This is trial version www.adultpdf.com
Trang 8©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 28
The two most important qualities for an operational auditor are:
Independence and Competence
of Operational Auditors
Independence
Competence
This is trial version www.adultpdf.com
Trang 9©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 29
Learning Objective 5
Plan and perform an operational audit.
This is trial version www.adultpdf.com
Trang 10©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 26 - 30
Specific Criteria
Were all plant layouts approved by home office
engineering at the time of original design?
Has home office engineering done a reevaluation study of plant layout in the past five years?
Questions that might be used to evaluate plant layouts:
This is trial version www.adultpdf.com