Obtaining Knowledge of Business

During this phase of the audit process, auditors need to acquire a sound knowledge of business and an understanding of the risks facing the efficiency of processes for applying for licences and programs.

By clicking on the links in the list below, auditors can consult Tables 1(a) to 1(g), which present questions that they can use to develop their knowledge of business pertaining to a specific application-processing function. These questions are based on the  general questions included in thePractice Guide to Auditing Efficiency and have been adapted and expanded in order to increase their relevance to an audit of application processes. (Additions to the questions and risks in the Practice Guide are shown in italics). Note that the questions have been classified according to the seven functional areas enabling efficiency described in the Practice Guide.

1. Commitment and tone from the top
2. Strategic planning
3. Operation planning
4. Project and operations management
5. Information technology (IT) systems
6. Performance monitoring and reporting
7. Continuous improvement and innovation

Note that there may be situations where it is not advisable or possible to perform an efficiency audit. In some cases, the subject matter is not auditable. If management has not implemented systems and practices to achieve efficiency, and management does not measure efficiency, and auditors cannot measure efficiency, then it will not be possible to perform an audit.

Once a decision has been made on the appropriate emphasis for the audit of an application process, auditors must determine what their audit objective(s) will be.

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