Planning
Fieldwork
Reporting

Planning

The audit process begins with planning the audit. During this phase, the audit team will perform the following:

Distribute Audit Notification

Conduct Pre-Audit Meeting

Interview Department Personnel

Review Policies and Procedures

Understand and Document the Business Processes

Perform Risk Assessment

Prepare a Detailed Audit Program

Prepare audit budget (in hours)

Select items to be Audited (samples, not 100%)

Fieldwork

The second phase of the audit is called fieldwork. During this phase, the audit team will physically be on site at the audit client's location performing the audit. The following are some of the procedures generally performed during fieldwork.

Review Supporting Documentation

Interview department personnel

Perform analyses

Identify Exceptions

Identify Recommendations for Improvement

Prepare Written Audit Comments (i.e., findings)

Department Provides Written Response and Corrective Action Plan for findings

Reporting

The third phase of the audit is reporting. During this phase, the auditor in charge will prepare the written audit report which summarizes and communicates the audit results.

Issue a draft report

Discuss draft report with unit management

Issue final report

Report is factual, clear, concise, and appropriate tone

Report distribution:

President

Executive Vice President

External Auditors

Chief Financial Officer

Controller

Audit Subcommittee

Division Vice President or Senior Vice President

Department Head