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. For this, an auditor should have a deep knowledge of development, design and security standards, with latest algorithms updates.

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 and design
  2. Procurement or purchase
  3. Implementation
  4. Impact of project

Areas to be covered by technical audit

Planning and 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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