Technical audit

Technical Audit[1] (TA) is an audit performed by an auditor, engineer or subject-matter expert evaluates deficiencies or areas of improvement in a process, system or proposal. Technical audit covers the technical aspects of the project implemented in the organization

Objectives of Technical Auditing

  • The technical operations are being performed as per requirement.
  • Sound framework of control is in place to sufficiently mitigate the potential risk.
  • The procured technical equipment is technically suitable for the purpose.
  • Authority and responsibility for operating activities are assigned properly.
  • Information system is adequate to provide assurance of operating activities being performed properly.

Concentration of Technical Auditing

  1. Planning & Design
  2. Procurement or Purchase
  3. Implementation
  4. Impact of Project


Areas to be covered by Technical Audit

Planning & DesignProcurement/PurchaseImplementationImpact of Project
  • Need analysis & Demand analysis
  • Technical Specification preparation and authorization
  • Quality Assurance and Experience of Supplier required in the project
 →
  • Compliance with Financial Manual
  • Independent evaluation of received proposal.
 →
  • Timely completion of project
  • Provision of liquidity damage in case of delay in project completion.
  • Acceptance Test Report
 →
  • Reduction in operation cost or improvement in operation.
  • Increase market share
  • Improvement in Key Performance Indicator (KPI)s
  • Increase customer loyalty or decrease customer churn
  • Increase Revenue of the company.

Benefits of Technical Auditing

  • Improvement in Internal Control systems to mitigate the potential risk.
  • Improvement in the quality of service.
  • Assurance of Revenue.
  • Transparent and cost effective procurement of goods and services.
  • Completion of project on time.
  • Reduction of project cost and annual operating cost.
  • Helps re-scheduling of project activities.
  • Performance improvement of a system.

See also

References

  1. ↑ Technical Audit
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