Operational Auditing:
Adding Value to Organizations

About the Author

John D.
            Tongren picture

John D. Tongren, Ph.D., CCP, CMA, CSP

John Tongren is a specialist in management control processes and the impact of technology on their effectiveness. He has earned international recognition for his expertise in the audit and control aspects of information systems as well as his visionary perspective on contemporary internal audit issues.  John originated The CoActive Management Model, The CoActive Control Principles and The CoActive Audit Principles.  He is active in the total quality movement as well as the development and audit of quality systems.  He is an academic as well as a practitioner.  Dr. John is a Faculty Member of the University of Phoenix Online Campus and the Grand Rapids Michigan Campus and teaches accounting, information systems and management topics in the MBA program.  He also taught in the Online MBA program for Davenport University.

John began his business career as a Labor Relations Administrator.  From that beginning in manufacturing he gained experience in Project Engineering, Production Management, Production Planning & Control, Internal Consulting, Strategic Planning, and a number of positions within Information Systems.  He moved into internal audit in 1972 when he joined a major international manufacturing firm as a Senior Internal Auditor, specializing in financial and operational audit.  Selected to head the formation of an EDP auditing capability, he pioneered the development and application of computer assisted audit techniques, established a formal Information Systems Audit function, performed and directed audits at world-wide data centers, established auditor involvement in application systems development, and developed and implemented an integrated Information Systems/Financial audit methodology.  In 1978 he joined an international accounting and auditing firm.  He became the National Director of Computer Accounting and Auditing, a function which he established for the firm.  In that role he was responsible for National Office computer operations, client accounting and IS Audit support services, and long range systems planning.  In 1981, he established Tongren & Associates and entered the private consulting field.  He specializes in assisting clients enhance their management control processes and evaluation systems through facilitation, assurance, education, and participation in comprehensive audit/review engagements.  John is known by many consulting firms as a "consultant to consultants" and also works with professional organizations to enhance their education programs.

Dr. Tongren holds a BA from DePauw University, a MBA from the University of Michigan, and a Ph.D. from California Coast University.  He has earned the professional designations of Certified Computing Professional, Certified Information Systems Auditor, Certified Management Accountant, and Certified Systems Professional.  He is listed in the Marquis 7th Edition of Who's Who in the World, the 19th edition of Who's Who In the Midwest, and the 1st edition of Who's Who of Emerging Leaders In America.  He is active in a number of professional organizations in his areas of interest, and has held leadership positions in many. 

This is the second publication in a new series of mini-seminars prepared from the most popular Tongren & Associates seminars.  T&A mini-seminars are condensed versions of multi-day seminars presented by Tongren & Associates.  This format enables internal auditors around the globe to experience Tongren & Associates seminars at their own pace, in their own place.

Please also preview Dr. Tongren's "Exceeding Expectations for Internal Auditors".

Additional references and information are available at http://www.TongrenandAssociates.com/.

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Operational Auditing:

Adding Value to Organizations digitalSeminarTM

“Operational Auditing: Adding Value to Organizations” contains 3 hours of PowerPoint presentation with synchronized digital soundtrack offering thought-provoking and practical ideas how to add value to your organization using today's world class operational auditing methodologies.  This seminar offers state-of-the-art thinking using state-of-the-art technology.  Receive all the benefits of attending a seminar at your convenience in a suitable format for both group and individual self-paced training.

Click here to view sample “Operational Auditing: Adding Value to Organizations” Presentation

Notes: Click the above link to view this digitalSeminarTM

It will take a few minutes for this presentation to start as this file is large (approximately 11 megabyte)

Make sure your speakers are on or you are using a headset so you can hear the narration

To pause while viewing the presentation right click the mouse and select PAUSE;
           to resume,  right click the mouse and select RESUME

To replay the audio track for a specific slide go to that slide
            then double-click the speaker at the right bottom corner of the slide  

Click here to view sample slide notes for the “Operational Auditing: Adding Value to Organizations” Presentation

Operational auditing itself is not new — but the operational auditing methodologies of today's world class organizations are.  The operational auditing objective of reviewing departments and programs for "good controls" is not new — but focusing on cross functional business processes rather than auditing the "whatever department" definitely is.  The idea of performing some operational audits to round out the annual internal audit plan is not new — but adopting an overall value added approach based on operational audit concepts for the entire internal audit/assurance department certainly is.

Just as "Internal Auditing" has been redefined, operational auditing is undergoing a transformation from a very broadly defined "audit of unit activities, systems, and controls within an enterprise to reach economic, efficiency, effectiveness, or other objectives" to a highly focused assessment of organization risk, capability and performance.   Traditional audit steps such as preliminary surveys are being replaced by collaborative risk assessment.  Audits of organizational functions using standardized checklists are being replaced by cross functional teams using contemporary management tools from quality management and process reengineering.

Implementing a value added approach is a critical step towards achieving the redefined goals of Internal Auditing.

This seminar explores three different operational audit models that focus on adding value to Organizations and addresses topics that include …

Understanding Auditing Foundations
Ongoing Development of Internal Auditing
Exploring Operational Auditing Development
Emerging New Organization Business Needs
Emerging New Organization Risk & Control Paradigms
"Where's The Money?" Operational Auditing Model
The Value Added Operational Auditing Model
Risk Based Audit - rather than control based
Risk Based Audit 
Process Based - rather than task based
Process Improvement Principles
 Best Practice Based - rather than "Three E" based
Industry, Organization, Function, COSO
Team Based - rather than "audit expert" based
Facilitated Self Assessment
Added Value Results - rather than "auditor's opinion" based
Reliance and Quality
Top-Down Operational Audit Model
Summary and Challenge

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Additional Reference about Fraud 

If you like the quality of this electronic publication on CD check http://www.pleier.com.

Note: An Excellent Program to prevent and detect fraud is "the Anti-Fraud Toolkit".

As a publisher for 30 years I have been asked by many people where to find useful and cost-effective help preventing and detecting fraud.  While I suggest our David McNamee "Auditing Fraud", an excellent reference with 100s sold, it is not designed to create an anti-fraud program. I now have found a better answer.

John J. Hall, an internationally recognized expert on preventing and detecting fraud published an excellent product called "the Anti-Fraud Toolkit" so that more people can use his expertise more cost-effectively.

Now benefit from his new product to develop a comprehensive program to prevent and detect fraud in your organization!

In more than 6 hours of recorded video lecture, over 250 PowerPoint slides, many practice ‘To-Do’ action items, and practice tools (downloadable in each module), you’ll get the step-by-step, turn-by-turn instructions you need to take action right now. Short on theory and long on action steps, the lectures and tools in each module will enable you to take confident, effective action by building on the successes John witnessed in his clients.

You’ll also get guidance on what not to do in the fight against fraud – to help you avoid common mistakes, focus your precious limited energy, and avoid undermining your own efforts through inefficiency and uncertainly.

Use the link https://jr163.isrefer.com/go/aft-d/jp/ for full details and a demo of “the Anti-Fraud Toolkit” at the cost-effective price of $397. 

Please tell other Audit Professionals during your sharing about these resources.

Thank you.

Joseph R Pleier

Pleier Corporation