Advantages of using this

AUDIT UNIVERSE OF “departmental” or

BUSINESS PROCESSES “functional” basis for defining
The simplest (although not necessarily the audit reviews
best) way to define the audit universe is to (1) the area under review is
look at the internal telephone directory. This clearly bounded, and
will identify the discrete departments and
may, if viewed alongside any organisation
(2) reporting lines to responsible
charts, lend a definable form to the company. management are clear-cut
However, this approach perpetuates the
misguided view that such departments
operate in isolation of each other within their
own orbit.

Six Ubiquitous

Business
Processes
An further advantage of viewing
Revenue Process
business activity as a number of
processes is that it affords a more Expenditure Process

Processes
natural, systems oriented view by Conversion Process
following a business process Treasury Process
through its entire “life span” from Financial Reporting Process
inception to ultimate disposition. Corporate Framework Process

THE HALLMARKS OF A GOOD

BUSINESS PROCES
1. designed to meet objectives which are
clear;
2. has regard to competitive issues;
3. performance can be (and is) measured;
4. unsatisfactory performance is rectified;
5. activities are completed in a timely way;
6. processes are cost effective;
7. controls are “preventative” rather than
merely “permissive”;
8. as few “movements”/“stages” as possible
9. unnecessary steps have been
eliminated; • nothing is done which is
unimportant to the achievement of
objectives; 10. proper authorisations;
11. controls positioned as early as possible
in the process;
12. documented;
13. has an audit trail;
14. right people doing the right job;
15. room for adaptation;
16. defines risks within the process itself