Understanding the operational area and management's interest in having the area audited
Develop background information about the audit area
Develop objective criteria regarding operational efficiency
Perform preliminary analysis of the audit area
Perform detailed risk analysis
Develop and analyze data that might indicate problems
Perform inquiry and testing to identify source of problems
Performed detailed tests of operating activities and controls
Summarize findings - prepare report and discuss with management
Develop mechanism to follow-up on recommendations