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Audit Process

In: Business and Management

Submitted By rabbo
Words 371
Pages 2
Audit Process
Planning
The auditor will review any prior audits in your area and professional literature. The auditor will research applicable policies and statutes and prepare a basic audit program to follow.
Notification
The auditor will notify the appropriate department or departmental personnel regarding the upcoming audit and its purpose, at which time an entrance conference will be scheduled.
Entrance Conference
The entrance conference will include management and any administrative personnel involved in the audit. The audit's purpose and objectives will be discussed as well as the audit program. The audit program may be adjusted based on the information obtained during this meeting.
Preliminary Work and Planning
The audit program is further developed using knowledge and information obtained during this process. The auditor will gain an understanding of the operation from responses from the internal control questionnaire, interviews with key personnel, and walk-throughs of key processes. Based on this initial assessment of risks and controls, tests to determine whether controls are operating effectively will be developed.
Fieldwork
This step includes the testing to be performed as well as follow-up interviews with appropriate department personnel as necessary.
Report Drafting
After the fieldwork is completed, a report is drafted. The report includes such areas as the objective and scope of the audit, relevant background, and the findings and recommendations for correction or improvement.
Exit Conference
After the draft report is submitted for review, a meeting is scheduled with department management to discuss the draft audit report. This is a time for questions and clarifications. Department management should suggest any changes or corrections to the draft audit report. Results of other audit procedures not discussed in the report will be

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