Elements of the Statement of Work - Essay Example

The paper "Elements of the Statement of Work" is an outstanding example of an essay on finance and accounting. The statement of work comprises of ideological issues related to the purpose of the intended activity. A number of deliberations must be taken in order to have an effective statement of work. This paper will focus on elements of the Statement of Work considered necessary for the purchasing of services of financial auditors to help with the annual audit. 
In order to determine the elements necessary to purchase a financial auditor, a number of things must be prioritized. It would be vital to outline the required major deliverables and a timeline of when they are expected (Michael, 2008). This should be in line with the tasks involved in delivering these deliverables. In light of this, resources required need to be identified, together with the party involved for settling down the costs.

The organization should consider having a statement of work on the basis of its effectiveness. In this regard, the process should indicate the degree to which the process output conforms to what is right for the organization. If the intended purpose of the process of the audit is not clearly stated, the results of the process may not be necessary. Moreover, the process must be efficient; this is the degree to which the process of audit produces the required output in relation to resource cost (Kerzner, 2009). The output should have minimum resource cost. In addition, the process should assure the quality of the required expectations. There is a need to have a process that measures whether the intended work can be done correctly and on time. Since the audit might produce a report implicating some employees of the organization, the process should take care of the overall health of the organization including the working environment of its employees. A clear evaluation of the effects of the activity and its outcome should conform to the goals of the organization (Spitzer, 2007). In fact, the evaluation and the decision to hire audit services should be based on the value-added by the process.  

With such deliberations and in situations where the organization’s financial status review has taken a long time without evaluation, the financial auditor may be needed to assist the organization in preparation of the fund accountability statement in reference to the books and records maintained by the organization (Pickett, 2010). This means that the auditor must review direct and indirect costs billed to by the organization. In addition, the auditor must review general and program ledgers to determine the authenticity of documentation of costs. The audit must also provide a detailed procurement review on whether sound commercial practices such as competition, prices, and adequate control were employed in line with quantities and qualities received.

Remuneration of employees is also a vital component of the audit report which the audit must have the capacity to review. The audit must determine whether salary rates are reasonable for the positions held by the employees, and in accordance with the laws and regulations (Pickett, 2010). Another component of the audit review that the audit must review is the organization's assets. The auditor must have the capacity to determine whether assets were used according to the terms of related agreements. In addition to this, the audit must determine whether the technical assistance and services used by the organization are used for their intended purposes (Pickett, 2010).

Conclusion
A statement of work should contain different elements of considerations for the intended activity to be employed by the organization. In regard to the purchasing of services of financial auditors to help with the annual audit, it would be vital to outline the effectiveness of the financial auditors, how efficient the process of financial audit can be, and above all, the value added by the financial audit services.