The director of internal auditing of a city has been requested to audit the operations of the highway department for possible waste and inefficiency. The department is responsible for maintenance of city roads and highways and for minor road improvement projects. Major road improvement projects are let to outside contractors. The scope of the audit includes 1. Personnel utilization.

2. Inventories.
3. Quality control.
4. Planning.

Required:

a. For each of the four areas, list the activities for which the auditor would expect to find standards.

b. Describe the specific issues that should be addressed by the designated standards.