Internal Audit of Al Fresco
Audit Program
Objective:
To find out whether their financial information is free from irregularities.

Audit Steps to Be Completed

I. Planning and Administration Section

1. Prepare permission letter and engagement letter, and obtain approval from the audit director and the auditee. 2. Conduct audit planning, and the following should be discussed: * Timing of audit and planned participants * Timing of fieldwork * Internal control checklist * Risk areas/ internal controls * Assignment of audit objectives * Testing to be performed * Budgeted hours * Permission letter * Engagement letter

3. Conduct pre-audit interview with auditee and document discussions held. 4. Set the schedule of the preliminary audit with the applicable management and discuss the following: * Timing of the audit * Audit objectives * Key contacts for the audit 5. Obtain permission to access relevant information like: * Organizational chart * Relevant reports utilized by the auditee * Strategic documents 6. Prepare and review the internal control questionnaire: * What is the Al Fresco’s perceived internal controls strengths and weaknesses? 7. Inquire of the auditee as to whether any relevant process flowcharts exist.
If not, consider developing one for the permanent file.

II. Fieldwork

First Objective:

To ascertain whether the use and recording of petty cash funds are accurate.

1. Conduct a walkthrough of the process to determine if there are any design issues and to verify that procedures exist. This should be completed by inquiry and observation with the process owner and staff. 2. Perform testing of balances to evaluate the effectiveness of the control. 3. Steps to be performed:

* Ask whether an accurate petty cash voucher is