Operational Auditing--Fall Evidence = Support n Auditors collect information n Evidence should be sufficient, competent, relevant & useful n Methodology determined in advance n Supervision should be employed n Documentation should be included in working papers

Operational Auditing--Fall Attributes of Evidence n Sufficient: convincing n Competent: reliable n Relevant: consistent with objectives n Useful: goal oriented

Operational Auditing--Fall Types of Evidence Based on Procedure n Interviews n Recomputation n Detailed testing n Observation n Scanning n Statistical sampling n Confirmation n Analytical procedures

Operational Auditing--Fall W/P Documentation- Introduction n Efficient n Able to stand-alone n Clear n Relevant

Operational Auditing--Fall W/P Model n Audit program summarizes the work n Documentation and evidence supports the conclusions

Operational Auditing--Fall Supervision n Audit staff instruction n Individual work review n Working paper review n Report review n Audit objective assurance

Operational Auditing--Fall Expanded Testing Purposes n Detailed review n Compliance testing n System or performance evaluation n Exh. 9-1 (p. 365) & Exh. 9-2 (p. 372): examples

Operational Auditing--Fall Expanded Testing Criteria n Directly related to the risk examined n Efficient in design n Feasible with respect to the auditors’ abilities

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