Describe the steps of an audit ?
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Answer / gration
The audit is a complex engagement that has many steps,
starting off with a pre-audit where the audit team performs
an assessment of the level of risk involved. Once they have
a clear understanding, the next step is to plan the audit.
The planning process involves brainstorming and sharing
ideas among the audit members. It also involves
understanding the client's business environment, identifying
the sources of information, and developing the audit strategy.
| Is This Answer Correct ? | 11 Yes | 1 No |
Answer / gration
10 STEPS OF AN AUDIT (Describe this )
1.Notification
2.Planning
3.Opening Meeting
4.Fieldwork
5.Communication
6.Draft Audit
7.Management Response
8.Ending the Auditing Process-Final Meeting
9.Report Distribution
10.Feedback
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / gration
The 10 steps of the audit process begins with notification.
The notification process alerts the party to be audited of
the date and time of the process. The notification also will
list the documents that the order wishes to review in order
to understand the organization of the company. The next
step, planning, is the steps the auditor takes, before the
audit, to identify key areas of risk and areas of concern.
This step is usually accomplished in a series of meetings
with auditing staff. This leads up to the opening meeting
between the auditing staff and senior management of the
auditing target as well as administrative staff. The
auditors will describe the process they will undertake.
Management will describe areas of concern to them and the
schedule of the employees that must be consulted. The next
step, fieldwork, begins after the results of the meeting are
used to adjust the final audit plans. Employees are notified
of the audit, schedules are drawn up regarding the
activities of the audit staff, and initial investigation is
begun after learning of business procedures, interviewing
key staff, testing current business practices by sampling,
reviewing the law and testing internal rules and practices
for reasonableness.
Communication is the next step. The audit team should
consistently be in contact with the corporate auditor to
clarify processes, gain access to documents and clarify
procedures. At the completion of the audit, the next step,
the draft audit, is prepared. The draft audit will detail
what was done and what was found, a distribution list of
parties to receive preliminary results, and a list of
concerns. The draft is given to management to review, edit
and suggest changes, probe areas of concern and correct
errors. Upon making final corrections, the report is given
to management for the seventh step, the management response.
Management is requested to answer the report by stating
whether they agree with the problems cited, the plan to
correct noted problem and the expected date by which all
issues will have been addressed.
The final meeting is designed to close loose ends, discuss
the management response and address the scope of the audit.
The ninth step is the report distribution, where the final
audit report is sent to appropriate officials inside and
outside the audit area. The last step is the audit feedback
whereby the audited company implements the recommended
changes and the auditors review and test the quality,
adherence and effects of the adopted changes. This continues
until all issues are adopted and the next audit cycle begins.
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