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Chapter 7

Field Work - II

* Applying the Audit Techniques
*Organizational Audits (and Productivity Evalua
tions
*Management Studies and Consulting
* Program Audits
* Contract Audits
* Integrated Auditing
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Chapter 7 Field Work .II * Consultants * Outsourcing and Cosourcing * Analytical Reviews * Fixed Assets Maintenance * Audit Evidence *Field Work in a High Technonogy Environment * Continuous Auditing Tambun Hutabarat 2 .

II * Applying the Audit Techniques ● Observing ● Questioning ● Analysing ● Verifying ● Investigating ● Evaluating Tambun Hutabarat 3 . Chapter 7 Field Work .

Tambun Hutabarat 4 . or quality system. process.II * Applying the Audit Techniques ● Observing An item of evidence found during an audit that relates to the quality of the product. Chapter 7 Field Work . Observations may or may not require corrective action.

II * Applying the Audit Techniques ● Questioning Questioning techniques are a heavily used. audit strategy. Teachers typically spend anywhere from 35 to 50 percent of their doing time asking questions. Research indicates that asking questions is second only to auditing. Chapter 7 Field Work . But are these questions effective in raising information achievement? How can auditors ask better questions of their audit? How can current auditing research inform practice? Tambun Hutabarat 5 . and thus widely researched.

. to examine in detail in order to discover meaning. to make a mathematical. essential features. (Psychoanalysis) another word for Tambun Hutabarat 6 . etc. etc. 2. to break down into components or essential features to analyse a financial structure 3. grammatical. Chapter 7 Field Work . analysis of 4. chemical.II * Applying the Audit Techniques ● Analysing 1.

Tambun Hutabarat 7 . To prove the truth of by presentation of evidence or testimony. substantiate. 2. To determine or test the truth or accuracy of.II * Applying the Audit Techniques ● Verifying 1. investigation. Chapter 7 Field Work . as by comparison. examine systematically. or reference: experiments that verified the hypothesis. ● Investigating To observe or inquire into in detail.

in addition to gaining insight into prior or existing initiatives. health care and other human Tambun services. criminal justice. government. realisable concept or proposal.(2) Evaluation is often used to characterize and appraise subjects of interest in a wide range of human enterprises. worth and significance. using criteria governed by a set of standards. or to ascertain the degree of achievement or value in regard to the aim and objectives and results of any such action that has been completed. foundations. It can assist an organization to assess any aim.II * Applying the Audit Techniques ● Evaluating Evaluation is a systematic determination of a subject's merit. Hutabarat 8 . or any alternative. Chapter 7 Field Work . (1) The primary purpose of evaluation. is to enable reflection and assist in the identification of future change. non-profit organizations. including the arts. to help in decision-making.

Tambun Hutabarat 9 . Internal controls are those structures. Management is charged with this responsibility on behalf of the organization's stakeholders and is held accountable for this responsibility by an oversight body (e. audit committee. elected representatives). Chapter 7 Field Work . audit committee) in fulfilling their responsibilities by bringing a systematic disciplined approach to assessing the effectiveness of the design and execution of the system of internal controls and risk management processes. and systems which help management effectively mitigate the risks to an organization's achievement of objectives.g. the board.g.II *Organizational Audits (and Productivity Evalua- tions Management is responsible for establishing and maintaining a system of internal controls within an organization. board of directors. processes. A dedicated. activities. independent and effective internal audit activity assists both management and the oversight body (e.

II *Organizational Audits (and Productivity Evalua- tions The objective assessment of internal controls and risk management processes by the internal audit activity provides management. Because internal auditors are experts in understanding organizational risks and internal controls available to mitigate these risks. Tambun Hutabarat 10 . Chapter 7 Field Work . the oversight body. and external stakeholders with independent assurance that the organization's risks have been appropriately mitigated. they assist management in understanding these topics and provide recommendations for improvements.

although the transferability of such practices from one organization to another may be limited by the specific nature of situation under consideration. consulting firms are also said to be aware of industry " best practices". As a result of their exposure to and relationships with numerous organizations. primarily through the analysis of existing organizational problems and development of plans for improvement. Organizations may draw upon the services of management consultants for a number of reasons.II *Management Studies and Consulting Management consulting is the practice of helping organizations to improve their performance. including gaining external (and presumably objective) advice and access to the consultants' specialised expertise. Chapter 7 Field Work . Tambun Hutabarat 11 .

development of coaching skills. Management consultants often bring their own proprietary methodologies or frameworks to guide the identification of problems. and to serve as the basis for recommendations for more effective or efficient ways of performing work tasks. Tambun Hutabarat 12 . technology implementation. or operational improvement services.II *Management Studies and Consulting Consultancies may also provide organizational change management assistance. strategy development. Chapter 7 Field Work .

(2) the causes of any inefficiencies or uneconomical practices. and using its resources (such as personnel. Chapter 7 Field Work . and (3) whether the entity has complied with laws and regulation on matters related to economy and efficiency. Economy and efficiency audits determine (1) whether the entity is acquiring. property.II * Programs Audits Program audits include both economy and efficiency. and space) economically and efficiently. Performance audits also include reviews of selected programs and activities to evaluate their overall effectiveness in achieving anticipated results. protecting. Program audits determine: Tambun Hutabarat 13 .

II * Programs Audits the extent to which desired results or benefits established by the legislation or other authorizing body are being achieved. programs. Tambun Hutabarat 14 . activities or functions. and whether the entity has complied with significant laws and regulations applicable to the program. Chapter 7 Field Work . the effectiveness of organizations.