Matakuliah
Tahun
Versi
:A0274/Pengelolaan Fungsi Audit
Sistem Informasi
: 2005
: 1/1
Pertemuan 25
Managing The Effectiveness of The
Audit Department
1
Learning Outcomes
Pada akhir pertemuan ini, diharapkan mahasiswa
akan mampu :
• Mahasiswa dapat menunjukkan hubungan
antara quality assurance, continuous
improvement system for internal auditor
dan marketing fungsi audit dalam
mengatur efektivitas dalam department
audit.
2
Outline Materi
• Continuous Improvement Systems for
Internal Auditors
– Balanced Scorecard
– Value-Based Metrics
– Activity-Based Costing
– Total Quality Management
– ISO 9000 Family
– Baldrige National Quality Program/Baldrige
Award
– Conclusion
3
Continuous Improvement Systems for
Internal Auditors
• Continuous quality improvement
methodologies can provide the tools to
lead internal audit into becoming, or
maintaining, a world-class status. Most of
the current continuous improvement
programs were designed for
manufacturing and then adopted to service
organization.
4
• They include:
– Total Quality Management (TQM)
– Six Sigma
– Baldrige National Quality Program
– Kaizen
– Theory of Constraints
– Balance Scorecard
– Value-Based Metrics (VBM)
– The International Organization for
Standardization (ISO) 9000 family
5
• Other improvement methodologies that
are not necessarily continuous include:
– Activity-Based Costing
– Business Process Reengineering (BPR)
6
Balanced Scorecard
• The center of the Balanced Scorecard
System is the entity’s strategy and vision.
• Users of Balanced Scorecard learn to take
advantage of non-financial measures
successfully.
7
• Measures are made from four
perspectives:
– Customers.
– Internal Business Process.
– Learning and Growth.
– Financial.
8
Value-Based Metrics
• A system similar to Balanced Scorecard -is
Value-Based Metrics (VBM). Like
Balanced Scorecard, the VBM approach
ties measures into strategic objectives.
VBM are particularly useful as the basis
for incentive compensation, resource
allocation, investor relations and other
areas. The true drivers of VBM are often
non-financial. In the VBM system, VBM
and targets are set that are aligned
(linked) to business strategies.
9
• The following is a sample of possible nonfinancial measures in VBM:
– Innovation
– Growth
– Operating effectiveness
– Operating efficiency
– Employee skills and training
– On-time delivery of services
– Customer satisfaction and retention
– Value chain
10
Activity-Based Costing
• Activity-Based Costing (ABC) is a cost
accounting theory used to allocate
overhead costs to products based on the
cost of the activities that are required to
produce the product or deliver the service.
11
Total Quality Management
• Total Quality Management (TQM) is
another strategic approach to business
improvement.
• TQM may use a variety of tools and
techniques to seek continuous
improvement of quality, productivity,
flexibility, durability and customer
responsiveness.
12
• Entities that use TQM need to commit to:
– Even better, more appealing, less-variable quality of
the product or service
– Even quicker, less-variable response – from design
and development through supplier and sales
channels, offices and plants all the way to the final
user
– Even greater flexibility in adjusting to customers’
shifting volume and mix requirement
– Even lower cost through quality improvement, rework
reduction and non-value adding waste elimination
13
• Total Quality Management (TQM) is an
applicable continuous improvement
approach, which applied appropriately,
should be effective in achieving and
maintaining high quality.
14
ISO 9000 Family
• The International Organization for
Standardization (ISO) is another continuous
improvement system.
• Generic means that the same standards can be
applied to any organization, large or small,
whatever its product – even if the “product” is
actually a service – in any sector of activity and
whether it is a business enterprise, a public
administration or a government department.
15
• Management system refers to what the
organization does to manage its processes or
activities. In a very small organization, there is
probably no “system,” as such, just “our way of
doing things,” and “our way” is probably not
written down but all in the manager’s or owner’s
head.
• The larger the organization, and the more
people involved, the more the likelihood that
there are some written procedures, instructions,
forms or records.
16
• These help ensure that everyone is not just
“doing his or her thing,” and that there is a
minimum of order in the way the organization
goes about its business, so that time, money
and other resources are utilized efficiently.
• To be really efficient and effective, the
organization can manage its way of doing things
by systemizing it.
• This ensures that nothing important is left out
and that everyone is clear about who is
responsible for doing what, when, how, why and
where.
17
• Management system standards provide
the organization with a model to follow in
setting up and operating the management
system. This model incorporates the
features that experts in the field have
agreed upon as representing the state of
the art.
18
Baldrige National Quality
Program/Baldrige Award
• The Baldrige National Quality Program
(BNQP) is supervised by the National
Institute of Standards and Technology and
it makes awards each year.
19
• The Award criteria, continually improved
since 1988, include seven categories:
– Leadership
– Strategic planning
– Information and analysis
– Human resource focus
– Process management
– Business results
20
• Such companies use the Baldrige criteria
to assess their management systems and
improve performance in their management
systems and improve performance in their
most vital areas. Although BNQP applies
only to organizations as a whole, the
principles could be followed without
officially applying for the Baldrige Award
with successful results.
21
Conclusions
• An overlap in criteria between these
programs is clearly evident (e.g., customer
focus).
22
The End
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