Professional Documents
Culture Documents
NIM
: F1314001
Akuntansi (Transfer) A
Managing The Performance Audit Unit And Its Work
Functions of management : a conceptual framework
1. Planning consists of setting objectives and determining the course to achieve
them.
2. Organization is how resources are allocated to accomplish organizational
purpose.
3. Direction is guiding, supervising and teaching subordinates to ensure that
they understand the objectives they are to accomplish them, and their
individual roles in accomplishing these objectives.
4. Controlling is closing the loop between the plan and the product.
Management By Objectives (MBO)
The methodology proposed for use in managing performance auditing is
management by objectives (MBO), which coordinates the functions of management
to achieve results. MBO is a widely accepted technique used to promote
organizational or project effectiveness. MBO consists of the following series of
actions, performed in chronological order :
a. Set Objectives. Define the purpose of the enterprise, and determine what this
means in terms of specific programs and their desired results.
b. Plan to achieve objectives. Set a course of action to accomplish desired
objectives.
c. Execute the plan. Explain the plan to the staff.
d. Evaluate results and take action to correct weaknesses. Examine the work
product. Determine if objectives were achieved and if they were achieved
efficiently and effectively.
Performance Audit Work Management
Using MBO as a management system for the performance audit function, the
balance of this chapter will be divided into two types of management activities :
1. Organizational and planning issues concerning overall management of the
unit such as :
a. Defining the organizations purpose.
b. Setting organizational goals and objectives.
c. Preparing an annual audit work plan.
2. Management functions dealing with specific management of audits include :
a. Audit planning
b. Organization of audit work.
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This analysis should result in preparation of a draft of the annual work program
to include a general estimate of available audit staff time. Care should be exercised
Paid leave.
Set aside some training time for each auditor.
Remember administrative time.
Set aside some time for miscellaneous fire fighting projects.
Remember that part-time and seasonal positions.
This information will be used to compile a proposed annual audit program consisting
of :
a. An introduction, describing the audit process and the methods used to
develop the proposed annual program.
b. A list of continuing audits in progress.
c. A list of the audits proposed for engagement during the year, including scope
and preliminary objectives, in priority order as assigned by the auditor.
d. Audits not recommended for engagement, although rated as high priorities
by the auditor.
MANAGEMENT OF SPECIFIC AUDITS
1. Tean Leader
Responsible for planning, directing, organizing and controlling the audit.
Assigns objectives to auditors, reviews all completed work, coordinates final
report.
2. Auditor
Responsible for planning and carrying out audit work on assigned objectives
ad tasks. Assigns tasks to audit assistants. Prepares findings related to
assigned objectives. Prepares related workpapers.
3. Audit Assistant
Carries out tasks assigned by auditors. Prepares related workpapers.
Planning Objectives
Planning objectives, by their very nature, can be predetermined and
standardized for every audit. They simply reflect the standards procedures of the
audit unit regarding required documents and the approval process.
Information Objectives
Information objectives are designed to lead the development of the
supportive data relevant to the audit scope. The key word for information objectives
is describe, as the purpose of the survey phase is to gather descriptive
information.
Audit Planning
The two fundamental sources of information for developing an audit plan are :