1. Operational Auditing--Spring 20066-1 Audit Preparation  Establish obj. & scope  KTT--Gather background info  Select resources  Contact auditee  Prepare preliminary program  Report planning  I/A approval

2. Operational Auditing--Spring 20066-2 Nature of Objectives  Review  Compliance  Evaluation  Combination of the above

3. Operational Auditing--Spring 20066-3 Scope  What (interest) & How (activity)  Scope is based on: –Adequacy of controls –Effectiveness of controls –Quality of performance

4. Operational Auditing--Spring 20066-4 Linkage of Obj. & Exam  See page 287 in text.

5. Operational Auditing--Spring 20066-5 Program Preparation  Audit preparation  Initial survey  Systems review  Detailed operations review (TBD)  Reporting issues  Wrap-up procedures  Exhibit 7-3 on p. 299

6. Operational Auditing--Spring 20066-6 Preliminary Survey  Opening conference –Agenda –Tone & teamwork  On-site tour--MBWA  Document study  Auditee analysis  Analytical procedures –Ratios –Objectives KTT

7. Operational Auditing--Spring 20066-7 Internal Control Review  Description  Evaluation –Matrix Objectives Results Risks Controls Evaluation  Reassessment--Go or no go