The audit assistant has been assigned to review performance indicators in the purchasing department of Kentucky Kapers, a manufacturing audit client. The assistant reports to you that he has obtained a copy of reports used by the supervisor in the purchasing department to assess the performance of the purchasing team. The reports include details of orders processed each day, any backlog of orders and the time taken to clear the backlog each week, and overtime requests by staff in the department. The assistant also reports that his discussions with the supervisor reveal that the performance indicators are used to manage the department but are not used for follow-up on unexpected results in the financial reporting system.
Required
Are the performance indicators in the report useful as audit evidence for the financial statement audit? Explain.