Performance Auditing: Moving from Theory to Practical Application

Audience: All Levels

Duration: One day

Internal Auditors bring a wide, enviable breadth of knowledge and skills to the organizations they represent. In particular, internal auditors have opportunities… perhaps like few others…to analyze the effectiveness, efficiency and economy of operations that underpin organizational success. Moreover, internal auditors can use this vast knowledge to help the organization effect much-needed change, providing significant value to internal and external stakeholders alike.

Whether you call it “performance auditing” or “operational auditing,” the auditor must answer these BIG questions: Will you audit control systems, will you audit performance directly, or both?

During the seminar, attendees will discuss how to select between the approaches depending on the specific circumstances of the audit.

Learning Objectives:

Attendees will:

  • Explore how performance auditing optimizes internal auditing’s breath of skills and knowledge to enhance stakeholder value
  • Compare and contrast performance/operational, financial and compliance auditing
  • Use an auditing framework that can be applied independent of the operation, program, or initiative under review
  • Identify criteria for evaluating efficiency, effectiveness, economy and relevance
  • Incorporate solid risk assessment practices throughout the audit
  • Identify which measures of performance to evaluate
  • Develop crystal-clear audit objectives, the relevant scope and needed program steps
  • Learn methods to obtain the necessary audit evidence

Throughout this highly interactive seminar, attendees will participate in class discussions and team exercises.

Course Outline

Adventures and Experiences in Performance Auditing

  • In Your Own Words - What does performance/operational auditing mean to you?
  • A Time for Sharing - experiences, successes and challenges
  • Typical barriers encountered

An Overview of Performance Auditing

  • Definitions, objectives and benefits
  • How does performance auditing differ from other types of auditing?
  • What the various professional standards say about performance auditing
  • Best practices in performance auditing – what the research shows

A Practical Approach to Performance Auditing: An Overview of the Service Delivery Model Approach

  • The BIG questions: Will you audit control systems, audit performance directly, or audit both?
  • Employ a practical performance auditing approach that can be applied to any performance audit.
  • Encompass the features of risk-based, value-for-money and process audits into one consistent, easy-to-understand model…the service delivery model.
  • The Service Delivery Model components - inputs, processes, outputs, outcomes

Planning the Performance Audit

  • Working closely with management during the preliminary survey
  • Various Information-gathering activities and related benefits
  • Performing the risk assessment
  • Identifying which aspects of performance to measure and evaluate
  • Identifying the related element(s) of service delivery to evaluate
  • Developing crystal-clear audit objectives, the relevant scope and needed program steps

Performing the Engagement

  • Evidence and documentation
  • Aggregating and analyzing data
  • Measuring performance
  • Reporting and communicating results