Wahid techniques – the significance and dependability manner for performance audit
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  • 1. Wahid techniques – the Significance and dependability manner for Performance audit (Part -01, 02, & 03) SummarySummary: The Wahid techniques technique will depend on the nature of the activity Performance audited, the depth and scope of examination, time of audit, processing methods, etc. In deciding on a specific technique, also need to take account of the objective of the audit action and the capacities limited by time or other factors. These Wahid techniques are closely related to and directly determined by the method how the audit activity is performed. And may use a number of techniques to ensure the dependability of resulting data, its quality required detecting the true causes of deviations, and its extent needed to devise generalized conclusions at a desired level, for each audit action. I would like to explanation my techniques about the Performance audit and financial audit activities prior to discuss the “Wahid techniques” I have tried to make clear main parts of Performance audit in advance of the” WAHID techniques” because I believe that the people who are related with accounts, finance, auditing and also the business owners will recognize generally about the Performance audit by investigative, What is performance auditingWhat is performance auditing?? Performance audit and financial audit have much in common. These two types of audit may involve the same kind of tasks, namely the measuring and explanation of the performance of an auditor. They also rely on similar data collection methods. While performance auditors have their sights on efficiency, financial auditors focus on the accuracy and correctness of accounts. However, there are some differences between performance audit and financial audit as well Performance audit refers to an examination of a program, function, operation or the management systems and procedures of a governmental or non-profit entity to assess whether the entity is achieving economy, efficiency and effectiveness in the employment of available resources. The examination is objective and systematic, generally using structured and professionally adopted methodologies Performances audit an activity assessing the degree of economy, efficiency and effectiveness in the use of human, financial and material resources at a level of organization unit, organization, or certain actions. This type of internal audit examines processes and systems of an auditor in particular Performance auditing is concerned with the audit of economy, efficiency and effectiveness and embraces: (A)(A) Audit of the economy of administrative activities in accordance with sound administrative principles and practices, and management policies; (B)(B) Audit of the efficiency of utilization of human, financial and other resources, including examination of information systems, performance measures and
  • 2. monitoring arrangements, and procedures followed by audited entities for remedying identified deficiencies; and (C)(C) Audit of the effectiveness of performance in relation to achievement of the objectiveness of the audited entity, and audit of the actual impact of activities compared with the intended impact’. Performance auditing is based on decisions made or goals established by the legislature, and it may be carried out throughout the whole public sector. In differenceIn difference: The concepts of “economy, efficiency and effectiveness (3Es)” are termed as follows. ““EconomyEconomy”” means the acquisition of the appropriate quality and quantity of human, financial, physical and information resources at the appropriate times and at the lower cost. “Efficiency”Efficiency” means the use of human, financial, physical and information resources such that the output is maximized for any given set of resource inputs, or input is minimized for any given quantity and quality of output. ““EffectivenessEffectiveness”” means the achievement of the objectives or other intended effects of activities. A performance audit assignment may include all/one or a combination of two aspects of “3Es”. Regularity and propriety related issues which impact performance may be considered in the conduct of performance audits. In most countries, performance audits of governmental activities are carried out by the external audit bodies at federal or state level. Many of these audit bodies have established guides for conducting performance audits which explain how performance audits are planned, conducted and its results reported. Most of the countries pay attention to financial audit but at the same situation without considering to the aspects of audit may it be better to do value of money audit. The aspect of performance auditingThe aspect of performance auditing?? Performance auditing is not overly subject to specific requirements and expectations. Even as financial auditing tends to apply relatively permanent standards, performance auditing is more flexible in its choice of subjects, audit objects, methods, and opinions. Performance auditing is not a regular audit with formalized opinions, and it does not have its roots in private auditing. It is an independent examination made on a non-recurring basis. It is by nature wide-ranging and open to judgments and interpretations. The special feature of performance auditing is due to the variety and complexity of questions relating to its work. Within its legal mandate, performance auditing must be free to examine all government activities from different perspectives The basic questions in performance auditingThe basic questions in performance auditing?? All government programs or activities (and most processes they generate) can, at least in speculation, be analyzed with the use of a method that describes how to move from
  • 3. one position to another by certain means in order to achieve specific objectives. In performance auditing, this is often done by trying to answer two basic questions: • Are things being done in the right way? • Are the right things being done? What ideas form the basis of performance auditing?What ideas form the basis of performance auditing? Performance auditing is a way for taxpayers, financiers, legislatures, executives, ordinary citizens and the media to ‘execute control’ and to obtain insight into the running and Outcome of different government activities. Performance auditing also provides answers to questions such as: Do we get value for money or is it possible to spend the money better or more wisely? A criterion of good governance is that all public services (or all government programs) are subjected to auditing Legitimacy and trust are essential values in all government undertakings, and performance auditing may contribute to strengthening these values by producing public and reliable information on the economy, efficiency, and effectiveness of government programs. Need for Performance Audit:Need for Performance Audit: Performance audit is the outcome of the important efforts directed to improve the system of management to ensure authentic output from resources employed. The concept of performance auditing emerged in response to: Increasing demand for information on efficiency and economy in managing resources and the effectiveness with which objectives are met; Need to determine whether: the operations of audit entities were conducted in a way that ensures the best possible use of resources or considering the 3Es; Officials in the public sector have met their accountability obligations; reporting on performance is credible and adequate. Performance audit provides the legislature and the public with an assessment whether the audited entities are achieving real value-for-money. It intends to Arrive at a verifiable condition for comparing what is being done and how well it is being done with the plans, policies and standards. The mere attentiveness that the basis for decision making is subject to scrutiny by the auditors may, by itself, compel public administrators to exercise caution and prudence in their actions. Performance Audit versus Financial AuditPerformance Audit versus Financial Audit Auditing is a process involving the examination of data, statements, records, operations and performance of an auditor for a stated purpose. Performance auditing goes beyond the consideration of promptness. It aims to determine to what extent the audited has discharged its financial or other responsibilities which imply assessment of the auditor’s operation in terms of the economy in acquiring resources, efficiency in using resources and effectiveness in achieving objectives. The major differences in the approach, scope and objectives between financial audits and performance audits are explained in the following table.
  • 4. Financial Auditing Performance Auditing a few examples presented following 01.01. Uses financial data to express an opinion on financial position and compliance with existing rules and 01.01. Uses financial as well as non-financial data to assess economy, efficiency and effectiveness in 02.02. the financial statements of the auditor fairly present the financial position, reflect results of operations and cash flows or manifest changes in financial position in accordance with generally accepted accounting principles; 02.02. The auditor has complied with laws and regulations for those transactions that may have a material effect on financial statements. The management of resources and determines whether: 03.03. Does not comment on the extent to which auditor is meeting target relating to output and delivery of services to the targeted groups they are serving. 0303. Evaluates the extent to which audited is meeting the target relating to output and delivery of services to target groups they are serving. 0404.. Does not make recommendations for improving economy, efficiency and effectiveness of programmed or projects being audited. 04.04. Offers general and specific recommendations for improving economy, efficiency and effectiveness of the audited being audited. In additionalIn additional: Performance Audit versus - Financial Audit Through dissimilarity with financial audit performance audit involves: More judgment and interpretation more selective coverage criteria for evaluation are not predefined evidence tends to be at best persuasive, rather than conclusive reports contain more discussion and reasoned argument also in this bases thy have some differences: (I)(I) Study selection stage (II)(II) Study design Stage (III)(III) Consulting the audited entity (IV)(IV) Team work Additional reviewAdditional review 0101. Financial Audit has published generally accepted principles of performance auditing in its implementation guidelines 0101.. Performance audit is concerned with the audit of economy, efficiency and effectiveness and embraces: Objectives and Scope of Performance AuditObjectives and Scope of Performance Audit The objectives of performance audits are to audit the economy, efficiency and effectiveness of auditors and to evaluate the discharge of accountability and due care of probity in the use of resources.
  • 5. Performance audits focus on one or more of following interrelated elements: 01.01. to provides objective assessment of the extent to which the auditor is currently pursuing the 3Es; 02.02. to identifies major deficiencies in management and control practices; 0303. to encourages improvement in the system of performance reporting; to provides information and proposes recommendations that can lead to better internal control and public accountability. Performance auditing examines:Performance auditing examines: Performance auditing covers a wide variety of issues to arrive at the conclusion relating to the 3Es. It examines and evaluates the systems, procedures, operation and result related to: 01.01.planning, budgeting, accounting and reporting systems; 02.02. development, appraisal and utilization of resources; 0303.acquisition and utilization of property, equipment, plant, inventory and other assets; and 0404. development, production and use of information. Performance audit process:Performance audit process: Performance audit deals with all kinds of measures, including laws, which financial impact. A measure can be either separate goal or interrelated goals, Measures may relate either to the expenditure or the revenue section of the state budget In financial audits, the auditor finds audited transactions as being either "right" or "wrong", "legal" or "unacceptable", etc.. Performance audit differs from financial audit in many aspects, both in theory and practice; following is shown the Performance audit process Initiation Initiation > Planning > Conduct > Assessment > Briefing to agency > Report to ParliamentInitiation > Planning > Conduct > Assessment > Briefing to agency > Report to Parliament Criteria of performance auditCriteria of performance audit: ••RelevantRelevant – have an obvious relation to the achievement of a given performance goal; ••OperativeOperative – specific enough for use in evaluation in practice; ••ConsistentConsistent – the criteria applied in an audit must be consistent both with one another and with criteria applied in earlier similar performance audits, provided they are still valid. In developing criteria, we may refer to multiple sources. Legislation, various directives and regulations (including internal regulations of the organization), and current concept documents are the basic and least controversial sources of criteria. It is also advisable to seek the opinion of independent experts, and draw on information from professional literature and relevant foreign experience. Wahid techniquesWahid techniques performance audit:performance audit:
  • 6. A good performance audit should rest on logic, an understanding of the background, and the ability to ask the right questions we can form our opinion on a whole population of organizations, people, etc., by investigative a representative. It should be a major objective in the financial management of any organization to put in place internal controls so that errors, misstatements and irregularities are prevented from occurring or detected if they have occurred. Internal controls can thus be either preventative (preventing the error) or detective (detecting errors which have occurred). Preventative controls are better as then no error should occur in the first place, Significance & perfect performance audit can ultimate solution whole of the organizational errors, misstatements & irregularities, I want to make the all of reader, student & auditors understand my imagination through the Wahid technique , I am sure that this technique is the perfect for companies & organization performance audit , I have developed techniques that is (Wahid techniques) expresses the Significance and dependability manner for Performance audit in any organization or companies this formula is: Performance Audit = Written evidencePerformance Audit = Written evidence ++ Analysis /Questionnaire.Analysis /Questionnaire. ++ Hub groupsHub groups ++ InterviewingInterviewing ++Direct observationDirect observation ((Wahid techniques -Wahid techniques -Part -01 Finished. > Below Part -02)Part -01 Finished. > Below Part -02) Wahid techniques – the Significance and dependability manner for Performance AuditWahid techniques – the Significance and dependability manner for Performance Audit (PART -02)(PART -02) SummarySummary: The Wahid techniques technique will depend on the nature of the activity Performance audited, the depth and scope of examination, time of audit, processing methods, etc. In deciding on a specific technique, also need to take account of the objective of the audit action and the capacities limited by time or other factors. These Wahid techniques are closely related to and directly determined by the method how the audit activity is performed. And may use a number of techniques to ensure the dependability of resulting data, its quality required detecting the true causes of deviations, and its extent needed to devise generalized conclusions at a desired level. For each audit action. Outline:Outline: Performance auditing under the heading of internal audit, Performance auditing is also practiced by foundations and public sector nonprofit organizations but the extent is not known, and not believed to be extensive. In the private sector of for-profit and not-for-profit entities, Performance audit is more complex and challenging compared to the audit of compliance, Its objective is to engage more closely with the audited institution to establish a formal process to use audit evidence to enable the public auditor to form an opinion and thereby to communicate to the audited the extent to which that agency has utilized its resources in an economic, efficient and effective manner. Whilst such an exercise
  • 7. certainly involves an element of value judgment on behalf of the auditor, a robust methodology does help to provide a fairly objective framework for use of this judgment. Performance auditing is that it adds value by providing impartial, fact-based, information through examining and reporting on the integrity, economy, and efficiency, of operations and the effectiveness and results achieved by government programs. Performance Audit is a response to these new challenges in public sector management Performance auditing promotes concepts and principles that enable public auditors to go beyond traditional compliance issues and enable them to examine performance of the executive in a wider situation. It promotes public accountability and is an aid to good governance. Accountability continues to encompass the concepts of traditional audits – the financial, compliance and propriety audits – but it is also expected to address concerns relating to equity, ethics and even environment while assessing the effectiveness of a program or activity. During this programme, you will be discussing all these concepts as well as the best practices in the field of performance audit. I am satisfied that I have established to a new performance audit techniques that is (Wahid techniques) I am sure that this technique will help manner performance audit in a basic but valuable way. I have includes to This article (Wahid techniques) Performance audit > definition, aspect, basic questions, ideas, Need, Perf- Audit versus Financial Audit, Objectives and Scope, examines, process, Criteria, This article has investigational been experienced in the performance audit, A good performance audit should rest on judgment, an understanding of the conditions, and the ability to ask the right questions of organizations, people, etc., by investigative a representative. Wahid techniques is a major objective in the financial management of any organization .to put in place internal controls so that errors, misstatements and irregularities are prevented from occurring or detected , These Wahid techniques are performed by the Significance and dependability manner following is showing : IntroductionIntroduction: One of the most significant reasons for performance auditing is to enable government to demonstrate that public accountability responsibilities have been fulfilled. National and provincial government departments and municipalities, government-funded institutions and public entities can greatly benefit from performance auditing. The selection of technique will depend on the nature of the activity audited, the deepness and scale of examination, time of audit, processing manners, etc. In deciding on a specific technique, also need to take account of the goal of the audit action and the capacities limited by time & supplementary aspects, WAHID TECHNIQUES – (WAHID TECHNIQUES – (the Significance and dependability manner for Performancethe Significance and dependability manner for Performance audit)audit) These techniques are closely related to and directly determined by the manner how the audit activity is performed. Wahid techniques use a number of methods to make sure the dependability of resulting data, its quality required to identify the true causes of variations, and its extent needed to develop generalized conclusions at a preferred level.
  • 8. Wahid techniques to specify the main technique which will be Significance & dependable Solution whole of the performance audit, Wahid techniques classify the following techniques of performance audit, Performance Audit = Written evidence + Analysis /Questionnaire. + Hub groups +Performance Audit = Written evidence + Analysis /Questionnaire. + Hub groups + Interviewing +Direct observationInterviewing +Direct observation A good performance audit should rest on common sense, an understanding of the situation, and the capability to ask the accurate inquiries, Written evidenceWritten evidence: An auditor should use a form of the audit report that is appropriate for its intended use and is in writing or in some other retrievable form. For situations when audit organizations are subject to public records laws. Auditors may present Different forms of audit reports include written reports, letters, briefing slides, or other presentation materials. Written evidence of the ability to carry out audit and performance assessment looks probable to be one of the five components of Wahid techniques. Written evidence an important element of the performance audit cycle, written evidence is to manage the changes suggested by the first part of performance audit the cycle this paper seeks to raise the issues involved in this process. The criteria which might be used to assess a written submission are presented. A possible mechanism for marking and grading is suggested, and strategies for optimizing the validity and reliability of that assessment discussed. A timescale for implementation is also suggested. When asked to prove to the effectiveness, or verify the plan and accomplishment, of an organization’s internal controls, auditors need to see written documentation that the controls are planned to be effective, and be able to congregate evidence that they have been implemented and are functioning effectively. Written credentials should speak to a complete process from beginning to end. The documentation should particularly tackle and emphasize areas where errors may be more likely to happen in the financial reporting procedure, and the internal control processes and procedures that have been planned to check them. Credentials may be careful satisfactory when it: 0101. Attend to specific risks of errors (or fraud) in a process, or where controls are required 02.02. Describes the controls to prevent and detect recognized risks 03.03. Indicates who should perform these controls, including who should perform the control when the person with primary responsibility is away 04.04. Indicates how the control will be performed 05.05. Describes what objective evidence, or credentials, is maintained to show that the controls have been performed. 06.06. Describes what physical evidence will stay behind, In the audit report, auditors should present satisfactory, proper evidence to support the findings and conclusions in relation to the audit goals. Obviously developed findings,
  • 9. assist management or mistake officials of the audited entity in understanding the need for taking corrective action. If auditors are able to sufficiently develop the elements of a finding, they should provide recommendations for corrective action if they are significant within the context of the audit objectives. However, the extent to which the elements for a finding are developed depends on the audit objectives. Thus, a finding or set of findings is complete to the extent that the auditors tackle the audit goals. Criteria of Written evidence:Criteria of Written evidence: The following criteria are optional as being important in the assessment of a written submission of a performance audit. TitleTitle: The title should give an signal of the area of investigational activity audited and the audit question, IntroductionIntroduction: This should incorporate a report about how an area of audit came to be important. The principles against which performance is being experienced should be stated, and their source described. The technique of data collection and analysis should be clearly stated. Quantitative audit should comprise reports describing how the study population was recognized. ResultsResults: This part should control an appearance of all the applicable outcome report, tabulation and statistical tests should be used appropriately. DiscussionDiscussion:: This section should include discussion of the following: 01.01. The technique used including its advantages and restrictions, for example the validity and reliability of the dimensions and the likely sources of bias. 02.02. The results and an expression on the difficulties in interpreting the consequences. 03.03. The reasons why the calculated performance fell short of the principles which had been set. If the performance was found to be acceptable there should be an details with reference to the original reasons for suspecting that this would not be so. 04.04. The proper terminations and implications of the results for the practice in terms of recommended areas where changes are required. 0505 If performance had been acceptable the author should converse the factors in the perform which facilitated this. ((Wahid techniques -Wahid techniques -Part - 02 Finished. > Below Part -03)Part - 02 Finished. > Below Part -03) Wahid techniques – the Significance and dependability manner for Performance auditWahid techniques – the Significance and dependability manner for Performance audit (PART -03)(PART -03) SummarySummary: The Wahid techniques technique will depend on the nature of the activity Performance audited, the depth and scope of examination, time of audit, processing methods, etc. In deciding on a specific technique, also need to take account of the objective of the audit action and the capacities limited by time or other factors.
  • 10. These Wahid techniques are closely related to and directly determined by the method how the audit activity is performed. And may use a number of techniques to ensure the dependability of resulting data, its quality required detecting the true causes of deviations, and its extent needed to devise generalized conclusions at a desired level. For each audit action Opening summary of final part - (03)Opening summary of final part - (03):: My endeavor this “WAHID TECHNIQUES” to be a valuable indication for not only accounting and auditing professionals one but also for persons who must relate with auditors, such as company managers, bank loan officers, suppliers, current and potential investors, and workers at governmental audit agencies such as the Securities and Exchange Commission. I have tried to explain through my article the values and their necessities fully, in clear words, using technical expressions only where necessary. My goal was to write a practical and effective article that “how to” lead. “Performance audit” The important part of auditing. At any Unacceptable auditing report in that circumstances Wahid techniques, are evidence of the crucial importance of this article (WAHID TECHNIQUES) This article tools and techniques covered can be adopted any financial error or misstatements on the basis of auditing standard. Accounting and auditing students and job holder of audit department will also benefit from this article; I hope they will keep this article for easy reference and daily use. Any confusing situation or problem may be solved by referring to the complete indicator. Corporate managers, internal auditors, and external auditors who closely wait to the Material, & suggestions, of this final part Analysis /QuestionnaireAnalysis /Questionnaire:: Definition of Performance analysis/ questionnairesDefinition of Performance analysis/ questionnaires: Assessment of various financial performance & indicators “Performance analysis” is the front end of the front end (such as return on assets and return on equity) in comparison with the results accomplished by synonyms are planning, scoping, auditing, and diagnostics. It's what we do to figure out what to do. Some Auditors can apply a number of techniques to analyze data: simple comparisons and reconciliations; statistical methods, such as mean, mode, median, standard deviation In statistics, the standard amount a number varies from the standard number in a series of numbers. The data collection methods adopted by the auditors should be explained; including rationales for any unusual techniques or procedures Analysis / Questions regarding the reliability of the data collected through consultants would likely be of special interest. In governmental planning and budgeting, the attempt to measure the social benefits of a proposed project in monetary terms and compare them with its costs. ; efficiency pricing; output budgeting; sensitivity testing; or cost-effectiveness analysis cost-effectiveness analysis Cost-utility analysis Clinical trials A form of economic analysis in which alternative interventions are compared in terms of the cost per unit of clinical effect, this Analysis / Questions techniques used by the auditors along with reasons for reliance on a particular technique .
  • 11. In othersIn others:: When start a main analysis for performance audit, auditor inform the ministries in question and any subordinate agencies about the purpose of the analysis, preliminary audit criteria, audit questions, method to be useful and the meeting of facts. The ministry makes comments, particularly to the audit criteria the norms and values that are relevant for the performance audit apprehensive. Audit is not an end in itself. However, it is an indispensable part of a system aimed at disclosing deviations from customary values and violations of the principles of authority, efficiency, effectiveness and economy; so that actions may be taken. When audit is measured to have a corrective function Analysis /QuestionnaireAnalysis /Questionnaire: Analysis /Questionnaires have an assortment in familiar as apparatus for collecting information. The Analysis /questions in an Analysis /questionnaire take more time and effort to develop, • It is more complex to prompt people to answer the questions in a questionnaire, • Allocation to respondents tends to be fairly complex Analysis /Questionnaires are better suited for more experienced auditors. Interviews and questionnaires have much in common as tools for collecting information. However, from the planning perspective, questionnaires are different in that: • The questions in a questionnaire take more time and effort to develop, • It is more difficult to motivate people to answer the questions in a questionnaire. There are four most important make use of for performance analysisThere are four most important make use of for performance analysis:: 01.01. Like currently have no performance problems, but you just want to correct the system to give better performance. 02.02. An auditor wants to exemplify and adjust personal stand-alone communication as part of the documents of that communication, and for assessment with some future time when, possibly, they start behaving another way. 03.03. A system is departing from previously identified objectives, and you want to find out precisely where and why this is so. This inadequacy can usually be corrected by changing different joystick. At slightest some small adjustments usually have to be complete to any new system as it goes exist. 04.04. A system may or may not have performance purposes, but it materializes to be affliction relentless performance evils. Characteristic of performance audit analysisCharacteristic of performance audit analysis: When preparation the annual year’s performance audit assessments all the parts of the position of accounts are reviewed. Every third year a total analysis is approved. Whereas only major modifies are reported in the intermediate years. Reviewing an area is base on the following characteristic: 01.01. Financial situation
  • 12. 02.02. Previous reports and important memorandum to the PAC the audit form 03.03. Organization – arrangement and complication 04.04. political/public responsiveness and topicality 05.05. cross-ministerial problems 06.06. Remarks from the financial audit 07.07. Possibility for major disbursement programmes Before creation a report, an opening assessment is completed in order to obtain sufficient information regarding an area, so that an enough assessment may be finished of whether or not to start an assessment. Hub groups:Hub groups: A hub group is a qualitative research technique. It is a selection of some individuals brought together to discuss specific issues in an informal setting. Selected participants are related to the issue in a certain way. The reactions of the group are used to explore attitudes, beliefs, perceptions, and problems or to search for causes of problems and their solution. A facilitator is used to direct the group discussion and to hub attention on the specific aims of the session - this might involve developing practical recommendations Strategy of hubStrategy of hub:: The first port of identify for all troubled with policy making’ this site aims to encourage tactical thinking and develop policy making and delivery across government. It activities to provide users with access to a range of perspectives on policy matters. However, their appropriateness and value is a matter for personal users to judge and Policy Hub cannot and does not approve any materials included on this site which begin in non- government organizations. Quarterly, we spotlight an associate who has excelled in many areas of their work. This part is dedicated to showcase these skilled and highly talented folks who have exceeded our expectations and put our customers first in all they do with Quality Hub. In my mind, these kinds of results are no better than any "face for dollars" process and are what's preventing corporate recruiters from competing effectively with their external agency counterparts. A hub and spoke approach to sourcing passive candidates changes the underlying rules here by leveling the playing field. In SupplementaryIn Supplementary: This is where the use of the hub and spoke model for passive candidate sourcing can have a significant impact on both productivity and quality. While many corporate recruiters are successfully using Broad look to identify passive candidates, their productivity metrics are far below their external agency counterparts. The "too much work to do" excuse is part of the problem here, and this is a valid point. It does take more time to contact, persuade, and recruit passive candidates into the fold. However, from what I've seen, even with enough time, most corporate recruiters would still fall short. In my opinion, this is totally due to the use of unsophisticated recruiting techniques. Hub Group each individual incentive option we describe also can work for groups. That is, two or more employees can be paid for their combined performance. Group incentives
  • 13. make the most sense where employees’ tasks are interdependent and thus require cooperation. Interviewing:Interviewing: To recruit the best employees and reduce turnover in internal audit staff, employers need Effective interview techniques to identify candidates who possess the skills needed for successful job performance. Traditional interview questions don’t necessarily reveals the most pertinent information about internal audit candidates. Behavior description interviewing (and a related approach called situational interviewing) is a widely used technique for obtaining useful information about candidate behaviors and characteristics relative to specific job skills. The premise of behavior description interviewing is that past actions are the best indicators of future behavior. The interviewer begins by identifying necessary job skills and then develops interview questions to assess the candidate s ability to handle those job skills. Interview: effective interview techniques can help set a cooperative tone for audit engagements. Interview is commonly an assisting technique used by the auditor to get a better accepting of the issue to be audited and obtain additional information, where examination or paper study fail to recognize all relevant points. Information obtained through interviews gives the auditor certain clues when reviewing and assessing the actions of the auditee, also by allowing him to compare the comments of individual staff members on certain issues and thus form his opinion on their professional skills and moral virtues. In main questions, it is important to divide the interview into several topics or areas, and set their order: An auditor's ability to gain the client's confidence and develop a rapport can significantly affect the level and quality of information obtained during an interview. Setting the right tone and approaching interview subjects with tact and diplomacy can ensure questioning elicits useful, honest responses. Moreover, auditors need adequate preparation and training to ensure their client interviews are handled appropriately Prior to the interviewPrior to the interview:: Auditors should decide in progress the areas they want to cover, the correct questions they need to ask, and who best to perform the interview. Having these details in mind will hub the interview assembly and help auditors achieve intended results. Interviewers should also learn as much as possible about the client before the interview. Beginning rapportBeginning rapport: At the beginning of an interview, auditors may want to use some form of icebreaking technique to make the client feel more contented. Initiating a informal, non-work- related conversation can help start the interview on a positive note and defuse any possible opposition. Although time constraints are always a worry during interviews, spending five or to minutes establishing an initial correlation can actually help speed up the overall process. Subjects will likely be more cooperative if they feel contented with the interviewer,
  • 14. which can help reduce the amount of time necessary for the initial assembly as well as the need for follow-up sessions Acquired buy –inAcquired buy –in:: Once rapport has been recognized, the interviewer can segue into the real purpose of the conference. Auditors should temporarily make clear why they're performing the interview and describe how the outcome of the discussion might help lead to improvements in the client's company area. If clients know what to expect, as well as how the interview might benefit them, they may be more inclined to assist. The interviewer can then elucidate that part of internal auditing's job is to help clients identify ways that their work can be simplified, streamlined, and possibly realigned to establish more effective internal controls. Auditors can also emphasize that this process is helpful not only to the client's immediate business area, but to the organization as a whole. Helping clients understand the larger picture will make it easier for them to understand the need for the interview Accomplish the interviewAccomplish the interview:: After ahead buy-in, the auditor can then begin the formal interview. Open-ended questions typically yield the best results. Questions that cannot be answered with one word, such as "Tell me about your bank settlement process," prompt the client to offer more information. When encouraged to provide narrative responses, interviewees may offer useful details and unreliable information they may not have revealed otherwise. Avoiding "blocked" questions can also help stop false answers. When asked a exact question linked to performance, such as "Have you completed all projects on agenda?" interviewees tend to answer "yes," even if it constitutes a unfair reply. Helpful ListeningHelpful Listening: No substance how methodically a client answers questions during an interview, the information will be of little value if the auditor doesn't hear what's being said. Many tools can help auditors to listen, appreciate, and retain information from interview sessions. Attractive notes is one evident and extremely successful means Packaging upPackaging up: The internal auditor should also provide his or her contact information, in case clients later think of any details they may have forgotten to communicate during the interview. In addition, the auditor should mention that a follow-up conversation may be required for further clarification. The knack of the interviewThe knack of the interview: By helping clients feel more comfortable during the interview process, auditors may be able to obtain valuable information that would otherwise have been unavailable. The process may also reveal areas that, while not pertinent to the immediate audit, should be examined in the future
  • 15. In interviews, data reliability and accuracy may be affected by:In interviews, data reliability and accuracy may be affected by: 0101. The person interviewed, its position and vested interests, if any, 02,02, the situation during the interview, 0303. The competence of persons conducting the interview. If, for any reason, an interview was made under pressure or if others were near to hear it, the reliability and accuracy of this interview is likely to be lower. Likewise, the reliability of answers may also be affected by how you formulate the questions Auditors can thus follow up on the progress of work Interviews and written documents should be filed according to certain standard rules. Listed below are a few basic questions which should help the auditor file and classify data. InterviewInterview 0101 .who is the person being interviewed, 02.02. Who are the interviewing persons? 0303. When did the interview take place? 04.04. How did the auditors contact the person interviewed, 05.05. Was the person interviewed given any promise of confidentiality, etc? DocumentsDocuments 01.01. Where do the documents come from? 02.02. What is the content? 03.03. Where can additional information are obtained, 04.04. Who can be contacted for additional information? In the course of the audit, the auditor may learn "responsive information", such as employees' opinions on management, etc.. For this reason as well, auditors should make sure mystery. Direct observationDirect observation: Observation is a basic technique used in any financial activity. In the situation of audit, observation is a planned and embattled analysis of objects aspects of an action. The basic quality of observation, as an audit technique, depends on whether the auditor is part of the staff concerned (manager or expert) or an employee of a superior or other state pressure. Depending on this, observation can be done either by an insider or outsider Insider observation offers more in-depth knowledge of audited areas and a better chance to see the bigger demonstration, as the auditor can think all possibilities and actions, is familiar with the issues concerned, and has a lot more experience gained through useful work For impartial result, outsider observation therefore seems the more suitable option, even if it takes greater effort to penetrate the issue, because its results are generally better. It is used in particular where the auditor is advised about the center and the objective of an audit action. In some cases, especially where there are suspicions of
  • 16. criminal activity, it is good to start the audit as a hidden outsider observation and only switch to obvious observation after acquiring compulsory proof Observation has to follow a certain procedure, consisting of the following stages:Observation has to follow a certain procedure, consisting of the following stages: 01.01. Definition of observation subject, objective, and problems, 02.02. Creating conditions facilitating observation with a view to optimum results, 03.03. Gaining access to the environment and establishing contact to the staff and issues observed, 04.04. Actual observation, 05.05. Documentation and interpretation of observation results, 06.06. Audit of observation results. Only verified observation results, supplemented by results produced by other techniques, such as document study, discussion of findings with responsible staff, etc., may be used in the implementation. ConclusionsConclusions A performance audit may run for a long time, and there may be changes in awareness and actuality from the point in time when it in progress. In performance auditing it is often difficult to make a variety between the directions set out in the work plan and the explanation of the audit’s structure on the one hand, and the interest in studying questions that the final stage in the analysis of data involves combining the results from different types of sources. There is no general method for doing this, but it is of central importance that the auditor works systematically and carefully in interpreting the data and arguments collected. This stage involves weighing up arguments and assertions, consulting experts, and making comparisons and analyses. As the work continues, the draft report gradually takes shape. Direct observations are put into structured and as internal and external discussions progress, assessed and written; details are checked and conclusions are discussed. There is a need for exchanges of information based on discussion papers to discuss main issues that have emerged during the way of the performance audit techniques. By definition of performance audit, a technique is the way and procedure leading to a certain aim, while a technique is the tool used to reach that intend. Also, the techniques applied in audit work are the way and procedure leading to the objectives pursued by the audit and audit techniques are the tools engaged to accomplish the purpose pursued by audit techniques. In general, performance audits should use techniques which are specially designed and applied in this particular activity. Above all, it is the comparison technique, which forms the basis for an array of other methods in that its application serves an essential audit need,
  • 17. About The Author: Mohammad Wahid Abdullah Khan (MBA, CPFA, CPIA, CFC) Dhaka, Bangladesh Home Page: http://wahidbd.page4.me MOHAMMAD WAHID ABDULLAH KHAN Dhaka, Bangladesh, is a PhD Candidate in "Criminal Psychology" as well he is “freelance Author, online columnists, Human psychoanalyst, industrial psychotherapist, Certified Financial Consultant, & Certified Forensic Accountant, too dynamic entrepreneur, utilize creativity leadership and teamwork to design and execute solutions that creates customer value. Moreover Mr. Khan is CEO & Certified Consultant of” Wahid & co, Wak Business Solutions, Wak Business Support, “Wam Associates” & leader of the” Wahid Consulting Group”; Prior to consultancy Mr. Wahid has fulfilled more than 14 (fourteen) years working in various fields of Business like - Accounts, Finance, Auditing (Internal & External Audit), Project budgeting and Project costing related positions in some of the largest group & join venture companies in Bangladesh. Which experience encouraged him to work as a “professional consultant” from a few years, Mr. Khan is realistic and implements his assignment within the bounds, objectives and capabilities of the organization. His extraordinary quick understanding of strategic options helps find direction and supports management in decision making. He has a “doer” attitude and gets things done on the technical and functional side. As a “Consultant” Mr. Wahid believe that his study & physiological motivation is very strong, as well my confident level is high & my quantitative skills are well-built also he is crystal clear about my every single goal which helped me to be a very tough contestant “Consultant” in the business consultant arena Professional Membership: • Associate Member – Institute of Management Consultants Bangladesh (IMCB) •Member- Association of Proposal Management Professionals® (APMP®) • Member – The Next level Purchasing Association. •Member- The Chartered Institute of Personnel and Development (CIPD) • Member - The Professional Risk manager’s international Association (PRMIA) • Affiliate Member- Global Association of Risk Professional (GARP) • Member - The International Association of Risk and Compliance Professionals (IARCP) • Lifetime Member - Dragon fire martial arts association “International” (DFMAA) • Individual Member: License Logic LLC • Associate Membership - The American Psychological Association (APA)
  • 18. • Member - The Global Community of Information Professionals