1. Operational Auditing--Fall 2001 1 Evidence = Support 4 Auditors collect information 4 Evidence should be sufficient, competent, relevant & useful 4 Methodology determined in advance 4 Supervision should be employed 4 Documentation should be included in working papers

2. Operational Auditing--Fall 2001 2 Attributes of Evidence 4 Sufficient: convincing 4 Competent: reliable 4 Relevant: consistent with objectives 4 Useful: goal oriented

3. Operational Auditing--Fall 2001 3 Types of Evidence Based on Procedure 4 Interviews 4 Recomputation 4 Detailed testing 4 Observation 4 Scanning 4 Statistical sampling 4 Confirmation 4 Analytical procedures

4. Operational Auditing--Fall 2001 4 W/P Documentation- Introduction 4 Efficient 4 Able to stand-alone 4 Clear 4 Relevant

5. Operational Auditing--Fall 2001 5 W/P Model 4 Audit program summarizes the work 4 Documentation and evidence supports the conclusions

6. Operational Auditing--Fall 2001 6 Supervision 4 Audit staff instruction 4 Individual work review 4 Working paper review 4 Report review 4 Audit objective assurance

7. Operational Auditing--Fall 2001 7 Expanded Testing Purposes 4 Detailed review 4 Compliance testing 4 System or performance evaluation 4 Exh. 9-1 (p. 365): examples

8. Operational Auditing--Fall 2001 8 Expanded Testing Criteria 4 Directly related to the risk examined 4 Efficient in design 4 Feasible with respect to the auditors’ abilities