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CS Professional · Internal and Forensic Audit · Internal Audit of Specific Functions

In an internal audit of the maintenance function at Godavari Steels Ltd, the auditor wants to assess whether preventive maintenance is effective. Which indicator is MOST relevant?

The most relevant indicator is the trend of unplanned machine breakdown hours compared with completion of scheduled preventive maintenance. If preventive maintenance is effective, unplanned downtime should fall. Board attendance, share price and customer events say nothing about the maintenance function's performance.

  1. ATrend of unplanned machine breakdown hours against scheduled preventive maintenance completionCorrect
  2. BNumber of directors attending board meetings
  3. CShare price movement over the year
  4. DNumber of customer invitations to annual events

Explanation

Effective preventive maintenance should reduce unplanned downtime, so comparing breakdown hours with completion of scheduled maintenance shows effectiveness. Board attendance, share price and customer events are unrelated to maintenance performance.

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