Internal Audit Outline

Overview

  1. PLANNING:
    1. Review Continuing Audit File and prior year’s workpapers. Note deficiencies, exceptions and follow-up points, which should be included in current audit.
    2. Review pertinent reference sources including:
      1. Governing Auditing – Standards & Practice
      2. ACUA Exchange Library
      3. WESTLAW
      4. AICPA Audit & Accounting Guide
      5. Periodicals
    3. Contact area department head. Notify him/her of the impending audit. Discuss any changes in policies or procedures, which have occurred since the last audit. Include relevant points from prior audit and resulting Management response. Determine whether the Manager is aware of any problems or concerns, which may affect the scope or time frame of the audit. Update the Continuing Audit File where needed.
    4. Prepare and submit for approval:
      1. Request for EDP Support
        Request EDP support at least 1- 2 weeks in advance. Discuss information to be provided with EDP personnel prior to preparation for final request making sure an understanding is reached regarding information available; information required; workpaper format, sample size, as of date, etc.
      2. Audit Program
        Based on information gained through research, reviews and interviews revise Audit Program, where appropriate.
      3. Internal Control Questionnaire
        Revise and update Internal Control Questionnaire based on preliminary research.
      4. Planning Memo
        Complete the Audit Planning and Budgeting Memo and make a part of the final workpapers.
  2. SYSTEMS REVIEW:
    1. Internal Control Questionnaire
    2. Narrative Description
    3. Conclusion
  3. FIELDWORK:
    1. Perform procedures as outlined in Audit Program.
  4. ADMINISTRATIVE:
    1. Preparation, referencing, and review of workpapers, pointsheets, etc.
  5. FOLLOW-UP/CONCLUSION:
    1. Follow-up on all Outstanding Points.
    2. Draft Closing Conference & Report.
    3. Submit to Chancellor for review.
    4. Schedule Exit conference.
    5. Deliver final Report and copies.