This website uses cookies to ensure you have the best experience. Learn more

Audit Essay

7817 words - 32 pages



1.1Background of the study

The role of the Internal Audit traditionally has been limited to expressing Recommendations on financial statements and related issues of legality, regularity and fraud. This involves assessments of whether transactions were properly controlled, whether care was taken in the collection and custody of revenues, whether expenditures were properly incurred and generally, whether the executives’ intentions were being met.
However, this approach does not provide information on waste, inefficiency or ineffectiveness. Increased public expenditure, the need for more rational and informed decision making in ...view middle of the document...

In water and energy minister specifically investigate on irrigational projects.

1.4 Significance of the study

The major benefits and importance of this study are the following;
It will help the auditors in the organizations to know their role in the organization.
It will be enable the managers to be aware of the importance and use of performance audit in achieving intended objective.
It will be allowed the researcher to practice a larger similar study that could be performed in other organizational sector.
It will be used as an additional reference to the existing restructure and can be used as a spring boards for other research, who wishes to conduct a research in the same area.
1.5 Limitation of the study

The limitation of this study including the following;
* Amharic was the organization language and it was difficult translating it.
* The performance audit reports of many public institutions are written in Amharic.
* The time allocated for data collections is not sufficient to gather all the relevant information.
* Absence of sufficient data and document.

1.6 Research methodology

The researchers have use secondary data source, such as books, internet, audit reports and other related material to make the research completed.
Qualitative data analysis method had been used to observe the perspective in performance audit practice in public enterprise.

1.7 Organization of the study

The study has four chapters. Chapter one deals with the introduction part which containing, the background of the study, statement of the problem, objective of the study, significance of the study, scope of the study and limitation. Chapter two summarizes review of literature. Chapter three deal with data analysis and presentation. Chapter four deal with conclusion and recommendation.

Literature reviews
2.1 Definition of Performance Audit
Performance auditing is an audit of economy, efficiency and effectiveness with which a government organization, a program, a project, an activity or a function uses its resources in carrying out its responsibilities. It embraces:
(a) Audit of the economy of administrative activities in accordance with sound administrative principles and practices, and management policies;
(b) Audit of the efficiency of utilization of human, financial and other resources, including examination of information systems, performance measures and monitoring arrangements, and procedures followed by audited entities for remedying identified deficiencies; and
(c) Audit of the effectiveness of performance in relation to the achievement of the objectives of the audited entity, and audit of the actual impact of activities compared with the intended impact.
(d) Audit of the environmental effects of government activities.

The audit of the environmental effects of government activities entails the examination of government...

Other Papers Like Audit

Accrediation Audit Essay

1510 words - 7 pages Executive Summary Accreditation Audit- Task 1 Maggie Miklos January 25, 2014 Executive Summary At Nightingale Community Hospital (NCH) one of our core values is to provide superior service and outstanding clinical care as noted in our safety statement. We welcome The Joint Commission (TJC) to survey our facility on a triennial basis to ensure compliance with their established standards and Priority Focus Areas: Infection control

Communication Audit Essay

4023 words - 17 pages that even though the current communication practices in the organization are satisfactory, there is always a scope for improvement as there as in scenarios of expansion. The organization should strategize communication culture to maintain a healthy communication environment and shift from a goal based and client oriented work force to a communicating and strategic management. The key recommendations from this audit are: * The executive

Risiko Audit

869 words - 4 pages Pemahaman dan Penilaian Risiko Pemeriksaan Risiko Pemeriksaan atau Audit Risk (AR) adalah risiko yang timbul karena pemeriksa, tanpa disadari, tidak memodifikasi opininya sebagaimana mestinya, atas suatu laporan keuangan yang mengandung salah saji material. AR berkaitan dengan seberapa besar kemungkinan (probabilitas) pemeriksa menyimpulkan bahwa semua asersi yang disajikan dalam laporan keuangan yang disusun oleh manajemen (entitas) secara


326 words - 2 pages Insurance Insurance: an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specific loss, damage, illness, or death in return for payment of a specified premium. Certificate of insurance (public liability, professional indemnity £20m): cover people in the work place from damage of theft. Security Security: the state of being free from danger or threat Teachers, support staff etc.: when danger of

Internal Audit Role

2896 words - 12 pages audit function plays a key role in assisting the board to discharge its governance responsibilities. Yet how does the board – and its audit committee – satisfy itself that internal audit is functioning effectively and efficiently? The board’s responsibility for internal controls Through working with a broad range of organisations in Hong Kong and internationally, KPMG has identified a number of best practices in relation to the role played by

Acc 623 Audit Review

1560 words - 7 pages Audit Problems ACC 623 Test 1 Review I) Intro to Auditing a. The Need for High quality Information: i. Financial information is relied upon by investors to make their investment decisions, creditors to make lending decisions, and by other parties that include vendors, customers, and potential merger or acquisition partners. It is extremely important that this information be reliable since significant sums of money are at

Intro To Audit

1285 words - 6 pages Running Head: Intro to Audit Letter Larry Lancaster President, Chairman and CEO Apollo Shoes, Inc. 321 Shoe Place Blvd Shoetown, MAINE,   00001 Dear Mr. Lancaster, The purpose of this letter is to introduce you to the auditing services and other assurances we offer and explain you the benefits of each. We believe that conducting financial, compliance, and operational audits will be beneficial to your company. A

Luxury Store Audit

1377 words - 6 pages Luxury stores audit Gucci and Celine stores, Russian experience Monaco 2012 INTRODUCTION Monaco is a small country, but well known all over the world. All over the world it is known as a place of luxury. Every year a lot of tourists visit Monaco to have a good vacation visiting casinos, luxury restaurants and off course to do a shopping in a most known, luxury brands. In Monaco you can find a lot of different luxury boutiques for every

Revenue Cycle Audit Objectives

507 words - 3 pages REVENUE CYCLES AUDIT OBJECTIVES, CONTROLS, AND TEST OF CONTROLS INPUT CONTROLS 1. Credit Authorization Procedures * Only customer transactions that meet the organization’s credit standards are valid and should be processed further. 2. Testing Credit Procedures * It pertains to the valuation/allocation audit objectives and the accuracy objective 3. Data Validation Controls * Input validation controls are intended to

External Audit Chapters 3-6

2717 words - 11 pages predecessor is required respond. The predecessor does have to get the client’s permission before making communication with successor auditor. The purpose of communication is to help the successor auditor evaluate whether to accept the engagement. 2. What is the purpose of the engagement letter? What is included in the engagement letter? Audit standards require that auditors document their understanding with the client in an engagement letter. It

Student Org Audit Guide Outline

2489 words - 10 pages Xavier University – Ateneo de Cagayan Office of Student Affairs Student Activities and Leadership Development Student Organization Financing Guidelines 2014 Edition I. Introduction a. Audit Environment Student organizations, just like any other organizations have basic financial needs necessary for them to operate and perform their functions. These financial needs are being provided by the members and the school (also

Related Essays

Audit Essay

1732 words - 7 pages Auditing HW #1 – Aug 26 1-36: a. Explain why management might want an independent audit of its financial statements. McIver’s management may want an independent audit of its financial statements for several reasons. First of all, due to the desired increasing growth, there is now a greater risk that salesmen and/or managers could report inflated numbers that align with management’s goals. An independent audit would be beneficial in

Audit Essay

2259 words - 10 pages satu laporan. Laporan keuangan itulah yang disampaikan kepada BEJ tanggal 27 Desember 2002. Dijelaskan bahwa dalam laporan keuangan hasil audit Ernst & Young and Partner (Prasetyo, Sarwoko dan Sandjaja) berbeda dengan laporan konsolidasi yang dipublikasikan. Laporan keuangan yang dipublikasikan tanggal 28 November 2002 menyebutkan aktiva Bank Lippo sebesar Rp. 24 triliun dan laba bersih sebesar Rp. 28 miliar. Padahal menurut laporan yang

Audit Paper

1552 words - 7 pages Salman Budhwani: Keller CPA Independent Audit Report Smackey Dog Foods, Inc We have accepted the client and have started performing the audit on Smacky Dog Food. We have done our research over the company and the industry as a whole. We are aware that Smacky Dog Food is a small wholesale distributer of perishable dog food. Currently the company has a loan of $150,000 and is asking for another $150,000 to expand their business. The bank

Audit Analysis

1159 words - 5 pages Malott. 2. Training seminars on company policies. 3. Policy to sever all financial ties to clients. 4. Assigns personnel to audit and other engagements. 5. Considers experience with client's business and technical training. 6. Audits require both a consulting partner and a partner-in-charge. 7. Supervision, objectivity, and competence. D. Engagement team 1. Partner-in-charge - final decisions, not much of the work 2. Manager - on site decision