Audit Process: Preparation and Planning of Audit

Audit Process: Preparation and Planning of Audit What are the 9 preparation steps for an audit? - Correct Answer 1. Define the purpose of the audit. 2. Define the scope of the audit. 3. Determine the audit resources to be used. 4. Identify the authority for the audit. 5. Identify the requirements for the audited activity. 6. Develop a technical understanding of the processes to be audited. 7. Contact those to be audited. 8. Perform an initial evaluation of lower-tier documents to higher-level requirements. 9. Prepare work papers for the collection of data. Who are the three basic customers of an audit? - Correct Answer 1. auditee (people or area being audited) 2. audit boss (audit program manager, client) 3. organization (overall company being audited) scope of an audit - Correct Answer answers the question "What is being audited?" What 4 things does the scope of an audit specify? - Correct Answer 1. items 2. groups (functions) 3. activities (processes) 4. objectives What if additional areas requiring examination arise that are outside of the original scope? - Correct Answer Stick to the original scope but flag concerns for a separate examination at a later date. A serious deficiency, however, cannot be overlooked and should be appropriately documented and reported. audit criteria - Correct Answer requirements against which the audit evidence will be compared