During the Audit

Planning

During the planning stage of an audit, the auditor reviews prior audit reports issued for the area or department, applicable polices and procedures, laws and regulations and other relevant information. It is during this stage that the scope of work is determined and an audit program is developed to meet the objectives of the audit.

Notification/Entrance Conference

Departments or areas selected for audit will be notified in most cases, by e-mail.  This notification will include the purpose, objectives and scope of the audit of department under review.  There are cases in which the department may not be notified prior to audit, due to the nature of the audit (impromptu cash counts or investigations of alleged improper activity).  An entrance conference may or may not be scheduled. Basically it will depend on; if the nature of the audit warrants a physical meeting or a meeting is requested by upper management.

Fieldwork

During this stage, the auditor identifies, examines, and collects sufficient and reliable data to accomplish the scope and objectives of the audit as outlined by the audit program. The auditor communicates and discusses any opportunities identified with management and the appropriate personnel.

Draft Audit Report/Exit Conference

Once the fieldwork is completed, a draft report is prepared.  The draft report communicates to management and the appropriate personnel the results of the audit process and recommendations.  The report accompanies a notification, generally by e-mail, stating that fieldwork has been completed and management’s response to any identified opportunities for improvement or observations is requested.  An exit conference may or may not be scheduled. In most cases, it will depend on; if the nature of the results warrants a physical meeting or a meeting is requested by upper management.