Internal Audit Process



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%)


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


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