Project and Operations Management

Table 1(d) - Knowledge of Business questions for an audit of efficiency focused on a regulatory inspection and enforcement function

Note: Additions to the questions and related risks from the Practice Guide are shown in italics.

Potential Risks to Efficiency	Knowedge of Business Questions
Inspection and enforcement operations are not managed and conducted with due regard to efficiency. Controls are excessive in relation to similar well-managed organizations. Program design does not support efficiency. Standards of service are not met.	Does the organization have documented operations and/or project management systems and practices that demonstrate due regard to efficiency? How does the organization optimize its available production capacity, facilities, equipment, and personnel to produce the targeted volumes of outputs (goods and services)? For example, are there systems for monitoring the utilization of major resources (such as staff and information systems)? Are resources targeted to the most significant regulatory risks? For example, can management demonstrate how resource allocation is connected to the risk assessment? Where is staff geographically located? Why? Does the location of staff correspond to the location of the regulated population? How is office space allocated to staff? Does each staff have office space, or do field staff share office space to promote efficiency? Are there clear policies on travel and administrative expenses and do they incorporate due regard to efficiency? How does the organization measure performance and efficiency? What are the key performance indicators and targets related to efficiency? Are targets and standards being met? Does the organization have means of tracking the performance and efficiency of operations where the outputs are difficult to measure? For example, does the organization monitor achievement of milestones and target dates? Has the organization performed an assessment of controls over efficiency? If so, did the assessment include comparisons with other organizations?

Potential Risks to Efficiency

Knowedge of Business Questions

Inspection and enforcement operations are not managed and conducted with due regard to efficiency.
Controls are excessive in relation to similar well-managed organizations.
Program design does not support efficiency.
Standards of service are not met.

Does the organization have documented operations and/or project management systems and practices that demonstrate due regard to efficiency?
How does the organization optimize its available production capacity, facilities, equipment, and personnel to produce the targeted volumes of outputs (goods and services)? For example, are there systems for monitoring the utilization of major resources (such as staff and information systems)?
Are resources targeted to the most significant regulatory risks? For example, can management demonstrate how resource allocation is connected to the risk assessment?
Where is staff geographically located? Why? Does the location of staff correspond to the location of the regulated population?
How is office space allocated to staff? Does each staff have office space, or do field staff share office space to promote efficiency?
Are there clear policies on travel and administrative expenses and do they incorporate due regard to efficiency?
How does the organization measure performance and efficiency? What are the key performance indicators and targets related to efficiency? Are targets and standards being met?
Does the organization have means of tracking the performance and efficiency of operations where the outputs are difficult to measure? For example, does the organization monitor achievement of milestones and target dates?
Has the organization performed an assessment of controls over efficiency? If so, did the assessment include comparisons with other organizations?

Source: Many of these questions have been adapted from Northern Ireland Audit Office’s Improving Public Sector Efficiency: Good Practice Checklist for Public Bodies (2010), as well as from recent audits of efficiency.

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Practice Guide to Auditing Efficiency

Project and Operations Management

Source: Many of these questions have been adapted from Northern Ireland Audit Office’s Improving Public Sector Efficiency: Good Practice Checklist for Public Bodies (2010), as well as from recent audits of efficiency.

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Practice Guide to Auditing Efficiency

Project and Operations Management

Source: Many of these questions have been adapted from Northern Ireland Audit Office’s Improving Public Sector Efficiency: Good Practice Checklist for Public Bodies (2010), as well as from recent audits of efficiency.

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