Operational Auditing--Fall Audit Preparation n Establish obj. & scope n KTT--Gather background info n Select resources n Contact auditee n Prepare preliminary program n Report planning n I/A approval

Operational Auditing--Fall Nature of Objectives n Review n Compliance n Evaluation n Combination of the above

Operational Auditing--Fall Scope n What (interest) & How (activity) n Scope is based on: n Adequacy of controls n Effectiveness of controls n Quality of performance

Operational Auditing--Fall Linkage of Obj. & Exam n See page 287 in text.

Operational Auditing--Fall Program Preparation n Audit preparation n Initial survey n Systems review n Detailed operations review (TBD) n Reporting issues n Wrap-up procedures n Exhibit 7-3 on p. 299

Operational Auditing--Fall Preliminary Survey n Opening conference n Agenda n Tone & teamwork n On-site tour--MBWA n Document study n Auditee analysis n Analytical procedures n Ratios n Objectives KTT

Operational Auditing--Fall Internal Control Review n Description n Evaluation n Matrix n Objectives n Results n Risks n Controls n Evaluation n Reassessment--Go or no go