The Audit Process

The audit process can differ dramatically from job to job, depending upon the nature of the auditee and the scope of the audit work. However, there are several basic phases that are present in nearly all audit work that we do.

Planning Phase

In the planning phase, audit objectives are defined and the audit tests to be used are determined. An entry meeting is scheduled for the auditors to introduce themselves and to become acquainted with the area to be audited. Key personnel are identified, key internal controls are pinpointed, and the objectives of the activity under audit are determined. An audit program is prepared to serve as a detailed plan of action for the audit examination.

Field Work Phase

The auditor then completes the testing and evaluation phase of the audit, referred to as the field work. During the field work, the auditor gathers and tests information, including the internal control structure and compliance with applicable policies, procedures, and regulations, to determine areas which may need recommendations for improvement. When the field work is completed, an exit conference is held with appropriate management, to review the audit findings, comments, and recommendations.

Audit Report Phase

At the end of each assignment, the Internal Audit department issues a written report to the Vice President for Management and Business, detailing the objectives, scope, and significant audit findings and recommendations for improvements. Additionally, as appropriate, the results of our work are communicated to the management of the auditee for implementation of necessary improvements.

Follow Up

As needed, and within a reasonable time after completion of an audit, a follow up review is completed. The objectives of a follow up review are to determine whether recommended procedures have been implemented, internal controls have been strengthened, and