CASE STUDY
1
External Audit for United States Postal Services (EFE and CPM):
USPS is an agency of the Federal Government of US. The agency is providing postal services
throughout the country at a uniform cost irrespective of geographic locations. On the basis of the
external audit of the agency the following points have been summarized.
Advantages:
 Comparing to the relatively less profitable mailing business UPS and FedEx operate in
most profitable segment of business, i.e. package business.
 UPS and FedEx will have to use the services of USPS to deliver the packages to the
customers due to the huge reach of the agency.

 The final delivery of packages made by the USPS gives the agency an opportunity to
directly interact with its customers.
 The demand for package delivery is increasing with every passing day due to the
revolution of online shopping.
 Ever increasing customers’ preference to receive post office boxes.
 The shipping packages have experienced modest increase in each of last three years.
Currently the shipping packages of the agency accounts for almost 18.5% of the total
revenue of the packages.
 The changes introduced by the management in 2000 to reduce the work hours have
resulted in huge savings in operation expenses. In fact the agency is able to reduce $21
billion in expenses in each year due to the reduction in work hours.
 The total value of buildings and equipment owned by the agency is around $44 billion.
 The agency is currently operating as per the five year strategic plan drafted in 2011.

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External Audit for United States Postal Services (EFE and CPM)

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