INTERNAL AUDIT PROCESS

1. Internal Audit Process

1.1. Planning

1.2. Data Collection

1.3. Documentation

1.4. Evaluation / Conclusion

1.5. Reporting / Communication

1.6. Follow Up

2. Further details on IA field work 1. Standards on performing the engagement 2. Identify & assess risk 3. Evaluate adequacy of control design 4. Create a test plan 5. Develop a test program 6. Allocate resources to the engagement

3. DATA COLLECTION 1. Audit evidence requirement - types of evidence, availability, selection, nature 2. Data collection: identifying information- physical examination, documentation, re-performance, AP, CAATTs, etc 3. Audit supervision - ensure quality, efficiency & budget control

4. DOCUMENTATION / WORKING PAPER 1. Purpose: efficient tool for conduct & supervision, support audit conclusion & report, review & quality control, form of evidence 2. Manual vs. Electronic 3. Permanent vs. Current

5. EVALUATION / CONCLUSION 1. Evaluate evidence gathered & reach conclusion 2. Review all materials prepared & determine key results 3. Determine the 3 criteria 4. Evaluate the result 5. Component of audit finding: condition,criteria,cause,effect,recommendation