Internal Audit Specific Criterion No.1: Audit Planning
Audit planning is a key factor in ensuring the effectiveness of an internal audit initiative. Without an effective plan, the entire process may become inefficient, reduce overall effectiveness, and risk having the audit stalemate. To this end, it is essential to ensure a comprehensive, comprehensive and comprehensive audit plan.
The purpose of audit planning is to ensure the organization’s ability to meet the standards set by management and to identify areas of weakness that make the organization vulnerable to fraud, abuse and irregularities. The standard defines the purpose of the audit as evaluating the effectiveness of the organization’s risk management, control and governance processes to improve its overall internal control environment.
The audit plan should include the objectives of the audit, which must include the objectives set in writing before the start of the audit, and the scope of the audit. In addition, the audit plan should contain the selection criteria for selecting the audit team, the resources allocated to the audit, the types of evidence used, the methods of audit evaluation, the communi-cation of audit results, any remediation measures to be taken, and the control environment that must be in place to ensure the audit is conducted properly and according to the organization’s policies.
The scheduling of the audit is also important. The standard defines the duration of audit engagements as “sufficient to enable effective testing and evaluation of the organizations policies and procedures, including risk management strategies”. The auditor must consider the amount of work involved in the audit, the availability of audit staff, the external environment, and the differences in the types of tests involved. The auditor must also consider the risk profile of the organization and the auditors own resources and capabilities when determining the length and details of an audit.
In addition, the audit plan should set out in detail the test procedures to be used to evaluate the organization’s internal controls and processes, including the areas to be tested, the methodologies to be used, the evidence to be collected, the review of results, and other considerations. The auditor should consider the audit objectives and the risk issues when determining the type and amount of evidence to be collected to allow for effective evaluation of the organizations systems, policies and procedures.
Finally, the audit plan must provide the required assurance that the audit has been conducted in accordance with the organization’s policies and procedures. This is accomplished by preparing a summary of the work performed, including the key findings and recommendations, and providing this information to the audit committee. The summary should also provide sufficient evidence to demonstrate that the audit has been conducted in accordance with the organization’s policies and procedures.
In conclusion, audit planning is essential to ensure effective audit execution. Without a well-constructed audit plan, the audit may not be effective and the organization may be exposed to the risks of fraud, abuse and irregularities. Therefore, it is essential to ensure that accurate, comprehensive and comprehensive audit planning is used to ensure the effectiveness of the internal audit.
