Value Added Auditing ™ = Analytical Auditing
Quality, system, and internal auditing are focusing on risk management, process control, process capability, and organizational effectiveness. These value added audits require more information to be collected and analyzed to evaluate value, risk, waste, effectiveness, and efficiency. As an organization moves toward value added auditing, the auditor or audit team will collect more information, conduct in-depth analysis, and obtain sufficient evidence in order to reach conclusions.
What does this mean? Value added auditing for effectiveness, risk and efficiency requires more analysis. This may mean:
- Flowcharting critical processes.
- Identifying critical process variables.
- Deciphering critical process variation.
- Uncovering unexpected gaps between business objectives and process metrics.
- Discovering gaps or white spaces that can result in higher risks.
- Discovering potential risks and errors.
- Uncovering the absence or differences from what is expected.
- Identifying chronic or systemic issues.
- Uncovering fraud or illegal acts.
The challenge is that clause by clause auditor require more knowledge, skills, and abilities.