A Core Risk Management Skill for Auditors and Facilitators: Effective Analysis
OVERVIEW The approach to be presented for the core risk management skill of analysis is based on what is termed the logic diagram, which has three building blocks: findings, conclusions, and recommendations. Each of these three building-blocks will be defined, and then tests for their effective use will be presented. Then, the session will present the analysis process, for using and completing the logic diagram, the key steps being: Step #1 -- Develop key hypotheses, which during the process will be converted to conclusions Step #2 -- Specify the data packages, which will lead to findings Step #3 -- Speculate on options, to arrive at recommendations. Two process controls will be presented. The first is to assure that only appropriate key hypotheses are identified and used, in order to be efficient and effective. The second is that the process is managed by developing and completing a relevant logic diagram. Some further concepts and aids...