Getting Started With: Developing an Audit Program

Summary

This video guides viewers through the essential steps of developing an audit program, emphasizing the importance of early research and clearly defined objectives. It outlines how understanding risks and compliance requirements shapes audit scope, while advising on effective procedures and sampling methodologies. The continuous nature of risk assessment and the roles of audit team members are highlighted, alongside the necessity of a robust communication plan. By combining careful planning with relevant skills, auditors can create effective programs that meet their objectives.

Takeaways

• 😀 Start research on your audit topic as soon as it's assigned to understand its operations.
• 📋 Define clear objectives for your audit to guide its scope and procedures.
• 🔍 Identify relevant risk areas to focus your audit procedures on high-risk items.
• 📊 Gather resources and published guidance to enhance your audit knowledge and practices.
• 📆 Determine the audit scope, including the time period and specific processes to review.
• 🔑 Understand the key metrics and regulations relevant to your audit's objectives.
• ⚠️ Prioritize procedures based on risk assessments, timelines, and budgets.
• 📈 Develop a sampling plan to verify data completeness and select appropriate sampling methodologies.
• 🤝 Consider the roles and responsibilities of team members during the audit process.
• 📣 Create a communication plan to keep stakeholders updated on audit progress and findings.

Q & A

What is the primary purpose of developing an audit program?

The primary purpose of developing an audit program is to systematically assess compliance, operational efficiency, and financial integrity within an organization.

When should research for the audit subject begin?

Research should begin as soon as the audit subject is assigned, regardless of whether you have 3 days or 3 months notice.

Why is it important to set clear objectives for an audit?

Setting clear objectives is crucial as they dictate the scope of the audit and the procedures that will be included to achieve those goals.

What factors should be considered when determining the scope of an audit?

Factors to consider include the time period of the audit and whether the relevant processes were in place during that time.

How can risks be prioritized in the audit process?

Risks can be prioritized by conducting a risk assessment to identify high-risk areas that require focused audit procedures.

What are some procedures that might be included in an audit program?

Procedures may include examining documentation, conducting data analytics, and performing calculations related to the audit objectives.

What should an auditor understand about the organization being audited?

An auditor should understand relevant regulations, industry standards, and any internal control frameworks that apply to the audit subject.

What is the significance of having a sampling plan in an audit?

A sampling plan is significant as it helps verify the completeness of the data set, determines adequate sample sizes, and establishes the methodology for sampling.

What role do team members play in the audit program?

Team members' roles and responsibilities must be clearly defined, ensuring that each member has access to the necessary resources to perform their duties effectively.

How should communication be handled during the audit process?

A communication plan should be developed to periodically update stakeholders on progress and findings throughout the audit.