Which of the steps is inappropriate?

A procedure for carrying out probity audits is:

1. The work will be agreed with senior management and this may involve a one-off visit or a series of programmed visits.

2. The appropriate line manager should be contacted and a date set for the visit. It is possible to distribute an audit information brochure in advance of this visit.

3. It is possible to apply standardized documentation to this programmed audit work.

Probity visits should not be allowed to consume excessive audit resources and the approach will be to apply junior staff wherever possible and work to tight budgets of up to, say a week. This will depend on the type of audit.

4. Visits to remote establishments/operations should include:

a. a cash-up

b. vouching a sample of transactions from the banking arrangements

c. inventory checks covering all valuable and moveable items

d. a check on a sample of local purchases and tests for compliance, integrity and effect on the cost centre

e. a programme of tests applied to all areas that may be vulnerable to fraud or irregularity

f. a check on the performance of operational staff to assess whether they are working efficiently, are being properly motivated and engender good team spirit g. verification of a sample of returns made to head office h. other checks as required or agreed with management.

5. The work undertaken will have to meet the standards set out in the audit manual and any appropriate documentation, and report format should be agreed with the audit manager.

6. The standards of review should comply with the audit manual, and supervisory review and performance appraisal documents should be used by audit management.