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Unit 11: Introduction to Special and Efficiency Audit

 The government may order a special audit conducted on a corporation if there is evidence Notes
that its financial affairs are not being run in accordance with proper accounting practice.

 Statistical Sampling in auditing stands for the technique of forming an opinion about a
group of items on the basis of an examination of a few of the items.

 It may be recalled that test checking technique is one of the accepted auditing techniques,
which most of the professional bodies of the world, including the ICAI have recommended
for use by the members of a proper consideration of facts and applicability.
 Techniques of auditing refer to specific art and skill used for obtaining the evidence
required by the auditor.

 The concept of efficiency applies to all types of operations, even though some may have
outputs that are not uniform and are consequently more difficult to measure against
consistent standards.
 In operations with difficult-to-measure outputs, the assessment of efficiency focuses on
controls, operational processes, and work methods used to achieve efficiency.
 Efficiency information is necessary for management to determine whether the level of
efficiency achieved meets an acceptable standard. It is also necessary for comparing
efficiency levels before and after corrective action.

 Efficiency and associated factors usually can be measured and monitored best using a
family of indicators focusing.

 Efficiency is only one dimension of the performance of a government program or operation.

11.4 Keywords

Adverse Opinion: An adverse special audit report is issued when an auditor discovers outright
distortions that make the financial statements of a company unreliable.
Disclaimer of Opinion: A disclaimer of opinion special audit report is issued when an auditor is
unable to conduct an audit of a particular organization.
Efficiency: Efficiency indicates how well an organization uses its resources to produce goods and
services.

Internal Audit: This is a special audit report that is commissioned by a company's management.
It may be initiated by the company's executive management or the board of directors.

Qualified Opinion: A qualified opinion special audit report is issued when an auditor discovers
anomalies in the financial statements of an organization.

Quality: Quality refers to various attributes and characteristics of outputs such as reliability,
accuracy, timeliness, service courtesy, safety, and comfort.
Quantity: Quantity refers to the amount, volume, or number of outputs produced.

Special Audit Report: A special audit report is the report issued by an auditor after inspecting
the financial records of a company following a directive for the audit to be performed before the
usual annual audit.
Statistical Sampling: Statistical Sampling in auditing stands for the technique of forming an
opinion about a group of items on the basis of an examination of a few of the items.

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