Developing audit questions

The audit objective is set out in the form of questions that the audit is to answer. Developing the audit questions is an iterative process in which the questions are repeatedly specified and refined.

Performance audit

Planning

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Principle

The team should set out the audit objective in the form of questions that the audit is to answer.

Instructions

Audit objective

The audit objective is expressed by one main audit question, which sets out the focus of the audit.
The main audit question is broken down into increasingly more detailed questions.
The questions are auditable.
Issue analysis should be used to develop the audit questions.
The questions should be stated in the task plan.

The formulation of audit questions starts in the final stage of the risk assessment. What is essential is that the most important topic is pursued, based on the prior assessment of the most significant risks. Developing the audit questions is an iterative process, in which the team refines or reconsiders the questions in view of clarifying the main focus, structuring and

[link title="scoping" link="%2Faware%2FPA%2FPages%2FPlanning%2FDetailed-planning.aspx%23Set-the-audit-scope" /]

the audit, and considering whether the questions are auditable, i.e. whether audit criteria are available or can be developed, whether audit

[link title="evidence%20exists" link="%2Faware%2FPA%2FPages%2FPlanning%2FDetailed-planning.aspx%23Identify-the-audit-evidence-and-its-sources" /]

and is accessible by the audit team, and if not whether audit procedures can be successfully employed to collect and analyse data to generate the evidence. Unless care is taken in this area, it may prove difficult to gather

[link title="audit%20evidence" link="%2Faware%2FGAP%2FPages%2FAudit-evidence.aspx" /]

to answer the questions or time and resources might be wasted on irrelevant or unnecessary work. When planning a performance audit, it is vital to ensure that the questions are the correct ones. The wording of the audit questions is to be based on rational and objective considerations and structured thinking. Forcing rigour on our thinking might be challenging and time consuming. It should pay off with more structured audit approach and saving many hours (or days) of collecting and analysing a large amount of data that ultimately prove to be unusable. There is also a danger of getting too caught up in low level issues and detail; therefore, the teams should always remain pragmatic when developing the audit question.

Combination with other audit types

[link title="Financial" link="%2Faware%2FFA%2FPages%2FConcepts%2FObjectives-of-reliability-audits.aspx" /]

and

[link title="compliance" link="%2Faware%2FCA%2FPages%2FConcepts%2FObjectives-of-compliance-audit.aspx" /]

audit aspects, including environmental considerations in the context of sustainable development, can also be included in a performance audit. Whether to include such aspects is a matter of professional judgement and is a decision to be taken on a case-by-case basis. Auditors need to be aware that carrying out a performance audit is already a challenging task and that including additional aspects would be even more demanding. Therefore, pursuing combination of performance, compliance and/or financial audit objectives should always be considered with great care and undertaken only in cases where it is clear that it will be possible to obtain audit evidence and deliver clear, useful and timely messages at the reporting stage to satisfy all chosen audit objectives. When the audit deals with issues related to the use of information technology, the performance audit can be combined with IT audit. For example, when the audited entity’s efficiency is hampered by the use of bad quality data or by a failing IT project, auditors can use relevant IT standards and best practices to support their findings and conclusions. Where there is an overlap between other types of audit and performance auditing, the

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should be determined by the primary purpose of that audit.

Resources

The team can use the situation-complication-question structure to develop the key study question(s):

The situation provides background on the subject, through a brief description of the starting point of the audit. This involves a non-controversial statement, or set of statements, which a listener/reader would either know to be true, or willingly accept as such.
The complication represents the "so what?" factor, that is, what "complicates" the situation, and what makes the subject worthwhile to audit. There is usually a degree of subjectivity in the approach to the complication, in that we most often have a particular complication in mind to arrive at the audit undertaken; other complications might lead to different audits.
As a result of the complication, a question will generally arise in the reader/listener's mind.

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Last Modified: 30/05/2023 16:59 Tags:

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Developing audit questions

Principle

Instructions

Audit objective

Combination with other audit types

Resources

Developing audit questions