1. Operational Auditing--Fall 200810-1 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

2. Operational Auditing--Fall 200810-2 Attributes of Evidence n Sufficient: convincing n Competent: reliable n Relevant: consistent with objectives n Useful: goal oriented

3. Operational Auditing--Fall 200810-3 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

4. Operational Auditing--Fall 200810-4 W/P Documentation- Introduction n Efficient n Able to stand-alone n Clear n Relevant

5. Operational Auditing--Fall 200810-5 W/P Model n Audit program summarizes the work n Documentation and evidence supports the conclusions

6. Operational Auditing--Fall 200810-6 Supervision n Audit staff instruction n Individual work review n Working paper review n Report review n Audit objective assurance

7. Operational Auditing--Fall 200810-7 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

8. Operational Auditing--Fall 200810-8 Expanded Testing Criteria n Directly related to the risk examined n Efficient in design n Feasible with respect to the auditors’ abilities

9. Operational Auditing--Fall 200810-9 Scope n What (interest) & How (activity) n Scope is based on: n Adequacy of controls n Effectiveness of controls n Quality of performance