30 Questions
What type of issues are identified by being in the sequence starting 1.1 and printed in bold text?
Key Issues
How many key issues are normally noted on each system/activity SAPG?
Between 6 and 10
What is the purpose of the Seq. column in the SAPG table?
To identify each risk/control issue sequentially
Which column in the SAPG table discusses the measures in place to ensure management is informed of production activities?
Effective Compliance
What should an auditor always consider when reviewing a system/activity using SAPG?
Key Issues
How can management be assured that production downtime caused by plant breakdown is minimized?
By implementing effective control measures
What is the purpose of involving external consultants during the planning process?
To provide objectivity during reviews
What is the significance of conducting an initial pilot exercise for subsidiary X?
To incorporate procedure amendments
Why are divisional plans subject to review?
To ensure compliance with Group plan objectives
What is the purpose of analyzing each business activity in respect of internal and external influences?
To understand factors affecting the business
Why is it important to ensure all plans (e.g., IT, Manpower) are co-ordinated?
To maintain awareness of organizations' strengths and weaknesses
Why are all potential projects subject to feasibility study and assessment?
To ensure the projects are viable
What is the purpose of providing accurate and reliable information for planning purposes?
To ensure that corporate goals are realistic and measurable
What is the role of measurable targets allocated to each goal?
Monitoring progress and achievement
Why is it necessary to monitor actual progress against the plan(s)?
To ensure medium to long-term corporate objectives are achieved
What is the purpose of the control objectives described in Figure 3.2?
To ensure organizational structure is appropriate to business needs
Why should responsibilities and authorities be adequately segregated according to the text?
To enhance communication within the organization
Why should all planning activity remain realistic and objective?
To ensure management understands what is happening at the operational level
What role does ensuring adequate staff involvement in the planning process play?
Maintaining high motivation levels
Who can edit and update the text in the last section of the page as mentioned in the text?
Any user with access rights
What is the main reason for periodically reviewing the organizational structure according to the text?
To maintain alignment with business objectives
Why is it crucial to have a suitable and robust strategic planning framework?
To establish a mechanism addressing sustained competitive advantage
What is the function of span of control mentioned in the control objectives (point g)?
Optimizing managerial workload
Why is it important for the prevailing organizational structure to be suitably documented and communicated?
To demonstrate transparency and accountability
What is the purpose of the YES/NO Testing Testing to Report WP as mentioned in the text?
To ensure management is kept informed of production activities
What was the outcome of examining the November and December 2010 reports in detail?
13 instances of production shortfall reported with no follow-up action
What is the significance of the Regular Management Report (type PRO78X) mentioned in the text?
It is reviewed, discussed, and signed off at weekly team meetings
What is the purpose of the completed SAPG file as described in the text?
It is saved as a permanent audit file
What role does the Production Manager play in the context provided in the text?
To recommend actions to address production problems
What do the Flow Chart PRD04 and System Interfaces aim to achieve based on the text?
To alert auditors to system interfaces
Test your knowledge on developing operational review programmes for managerial and audit use. Questions cover areas such as recording details about specific audit projects, describing control objectives, and editing text sections as needed.
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