pzatalel@gmail.

com 1
pzatalel@gmail.com 2
pzatalel@gmail.com 3
Learning objectives 1
As the result of this session
participants will be able to
explain the:
importance,
methodologies,
documentation,
liaison and
Management
of marking.
pzatalel@gmail.com 4
Marking? 2

 Parts of P.A. Planning

 It can be performed
repeatedly
 No obligation for formal
reporting
 No concluded discussion
with the auditee

pzatalel@gmail.com 5
Key points 3

 Purpose of marking
 Methodologies used in
marking
 Documentation of
marking
 Liaison with the
audited entity
 Management of
marking
pzatalel@gmail.com 6
 4
Phases of Performance Audit
Follow up on
Performance audit
Developing Conducting Audit Report recommendations
Main investigation
Main
investigation
plan

Conducting feasibility
Study

Developing
Annual operational plan
Follow up
phase

Marking

Reporting
phase
Designing
Divisional
Conducting Strategic plan Excursion phase
Overview

Planning phase

pzatalel@gmail.com 7
 5
Purpose
 Updating overview
 Change
 identifying
 evaluating
 revising existing audit
areas
 strategy
 prioritizing
pzatalel@gmail.com 8
Methodology 6

 Top down approach

to information
gathering & analysis
 Selective approach
 Focus on areas
susceptible to change

pzatalel@gmail.com 9
Main Activities 7
 Selecting key data sources
 Review of data sources
 Identifying developments
 Evaluation of developments
 Resetting potential audit areas
 Revising audit strategy &
study proposal
 Documentation
 Reporting

pzatalel@gmail.com 10
Data Sources 8

 Significant
development
 policy objectives;
 main activities,
 financial
management
structure

pzatalel@gmail.com 11
Basis of Selection 9
Experience from
the overview
Internal &
external reports
research studies

pzatalel@gmail.com 12
Review & evaluation 10
 Methodology similar to
overview
 Don’t re do overview
 Cross-cut
 Document review
 Interviewing
 Summarizing
 Analyzing
 Evaluating
pzatalel@gmail.com 13
Be informed 11

 Internal and external

performance report
 Internal and external audit
report
 Consultancy and other
management reports
 Management, key sections
and committee reports

pzatalel@gmail.com 14
Steps of Evaluation 12

 Identify degree of
susceptibility to VFM
 Identify specific risk for
each
 Assess degree of risk:
likelihood, frequency,
significance
 Produce an orderly rank

pzatalel@gmail.com 15
Documentation 13
 Should reflect main
marking activities
 records results of cross-
cults of financial data
 identify further data
sources
 result obtained from each
data sources
 summarized out come of
the revision
pzatalel@gmail.com 16
Marking documents 14

 Cross-cuts
 for each data source a
brief covering note
and findings and
implications
 summary folder
additional risk
assessment forms and
revised audit strategy

pzatalel@gmail.com 17
 15
Contents of Marking working
papers
 Evidence collected
 Procedures used to obtain them
 The sources of the evidence
 The staff who carried out the
work
 The date of the work
 The detailed potential audit
area
pzatalel@gmail.com 18
Liaison during 16
marking

 Same procedure as
overview
 Inform top
management
 adequate contact with
relevant sections of the
auditee

pzatalel@gmail.com 19
Inform auditee staff: 18

 Role & purpose

 Methodology
 Information required
 Audit staff
 The liaison with top
management
 Purpose of the result

pzatalel@gmail.com 20
Inform auditee top 17

management:
 role and purpose
 methodology
 what is expected
from them
 audit team
 marking timing
 liaison management
 marking result
pzatalel@gmail.com 21