Audit is the examination and verification of records and other evidences by an
individual or a body of persons so as to confirm whether the records and other evidences present a true and fair picture of whatever they are supposed to reflect. Audits can be categorized basically into two types- Financial audit and nonfinancial audit. Financial audit is a statutory audit that helps in monitoring the financial performance of the company. Non-financial audit is non-statutory and serves two purposes. Firstly, it checks a companys compliance to standards and secondly, determines whether a product or service satisfies customers' demands in terms of features and quality. Both the audits are conducted to measure compliance to a set of standards. Both generate performance data that can be used for benchmarking and performance analysis and both identify opportunities for performance improvement. Here is the difference of financial and non-financial audit:
Financial Audit
Non-financial Audit
Relies primarily on standards set
externally (by government or by professional standards groups). Procedures are formalized and consistent from company to company. Compliance with procedures adds credibility to the audit. Standards are essentially the same from audit to audit Focus is on complying with standards set by external groups Audience is often primarily external, with audit standards used as a way of building credibility Generally conducted yearly
Focuses on measures that affect only
financial performance.
Relies primarily on standards set
internally on the basis of customer and competitor information. Procedures are fluid and should be adapted by each company. Measures should be created that suit the companys needs. Standards should change as performance improves. Focus is on exceeding standards set internally or by industry competitors. Audience is generally internal, with data being used primarily to improve performance. Conducted, on average, every 18 to 24 months. Focuses on a broad range of functions that contribute to the success or failure of a particular
process.
BACKGROUND OF THE STUDY
The study is about auditing electrical safety of the classrooms of PUP College of Engineering and Architecture these include the lighting, wirings and electrical outlets inside the room and by using TQM tools to analyze and determine it satisfy the students or to improve quality of facilities in the College of Engineering and Architecture building. First, we use audit form in checking whether a specific room complies based on Ergonomic Checkpoints like for example in lighting there must be a specific number fluorescent lights depending on the size of the room. We checked if there is adequate lighting on each room. We also checked if there are electrical warning signs placed near the outlets, also the wiring if it is properly covered, adequate number of outlets and if the outlets are reachable or not which is based on the electrical standards we get from International Universities that is applicable here in the Philippines.