1. Operational Auditing--Fall 20099-1 Audit Finding Components n Condition n Criteria/Standard n Effect: Relate to 5 Control Objs. n Cause n Recommendation n Note: Exh. 11-8 is a variation of this model

2. Operational Auditing--Fall 20099-2 Recommendation Considerations n Does it solve the problem? n Is it feasible for the BPO? n Is it compatible with the BPOs ops.? n Is it cost effective? n Is it a long or short-term solution?

3. Operational Auditing--Fall 20099-3 Assessing BPOs Comments n Financial statement assertions n Internal control assertions n See Exhibit 11-3

4. Operational Auditing--Fall 20099-4 Other Issues-COSO Model n Audit Findings Summary (pps. 11-6 to 11-9) n S-C-O-R-E classification n Impact and likelihood n Flows into Risk Matrix n Supports C 3 ER model n Note alternative approach in Exhibit 11-10

5. Operational Auditing--Fall 20099-5 Reporting Standards n Signed written report n Pre-issuance discussion n Clear, objective reporting n Purpose, scope & results required n Recommendations optional n Auditee response optional n Review of report & distribution

6. Operational Auditing--Fall 20099-6 Report Use n Audit Staff n Work summary n Action catalyst n Training n Evaluation n Follow up

7. Operational Auditing--Fall 20099-7 Report Use n Operating Management n Action catalyst n Support n Visibility n Evaluation n Top Management n Visibility n Audit scope n Objective insight

8. Operational Auditing--Fall 20099-8 Closing Conference n Audit review n Major findings n Other findings n Report review logistics n Audit conduct feedback n Thank you’s

9. Operational Auditing--Fall 20099-9 Report Model n Cover n Formalities n Executive Summary n Findings n Major n Other n See summary at 11-16 to 11-17, 11-23 to 11- 24

10. Operational Auditing--Fall 20099-10 Effective Writing n Gather information n Conversational style n Keep it short & simple n Active voice n Familiar vocabulary n Use captions n Use italics and white space n Use graphics & footnotes

11. Operational Auditing--Fall 20099-11 Other Reporting Issues n Interim updates n Distribution n Audit Committee n Senior Management n Department Management n Internal Audit n External Audit