Time is the important element on any audit. Setting a time budget acts as a principal control over the assignment and is the sole most important concern of audit management. A worthwhile audit is achieved within budget to professional audit standards and as a full discharge of its objectives. Objectives in the assignment plan should be accomplished and the audit manager review should assure this. Performance - time -
budgets makes clear that the internal audit activity should evaluate and bring about to the improvement of risk management
Target dates for start and completion and key stages. For larger audits, break the task
Down into defined stages and manageable parts that may be reported on individually. This allows the auditor to keep a focus on the objective at hand, and report before going on to deal with the next part.
For example, a corporate system, which has been devolved? Down to departments like employees, time- budgeting, or expenditure processing, may be cracked down into sections relating to each department.
Budgeted hours must be realistic and achievable. An alternative approach is more basic and simply states (for example):
LARGE AUDIT > 4 WEEKS (Approx 28 Days)
MEDIUM-SIZED AUDIT> 2 WEEKS (Approx 14 Days)
SMALL AUDIT > 1 WEEK (Approx 07 Days)
Extensions are not motivated as the auditor has to perform as much work as possible during the budget hours and then move on to the next job. The adopted policy should be described and detailed in the audit manual since work done on one audit detracts from work that might be done somewhere else. The extent of work done in such time frames relies upon on the skill and experience of the Individual auditor. A performance appraisal scheme benefits those who deliver quality reports within the time constraints. There are two different views.
One wants to perform the audit terms of reference to the full no matter how long this takes, even if budgeted hours are expanded. This normally involves extensive testing and an inability to defer parts of the audit to a later stage.
The other view is that audit management sets a defined number of hours according to the level of risk attached. When this budget expires the auditor must transfer to another work area, so recognizing the risks of not dealing with the next planned audit.
The auditor becomes too closely associated with the operation, asking for more and more time to devote on the audit. The correct position is to provide budgeted hours for the audit and then remove the auditor from the work once this has expired until there are exceptional circumstances. The working file will show what work is excellent that may be postponed to the next audit. Auditor attachment can lead to audit saturation where there has been too much time spent by the audit team on only one area of risk.
Auditors can be drafted in to deal with each department if a suitable programmed of work has been prepared and explained and the work programmed requires extensive testing and interrogation of the corporate database. Once gathered, it can be done by a variety of resources as time –budget on the starting point project volume
Conclusion: A practical audit is achieved within time - budget to professional audit standards and as a full release of its objectives. The auditor will also be concerned that compliance issues have been addressed by management and Implementation Standard The internal auditor should consider the probability of significant errors, irregularities, noncompliance, and other exposures when creating the engagement objectives.
budgets makes clear that the internal audit activity should evaluate and bring about to the improvement of risk management
Target dates for start and completion and key stages. For larger audits, break the task
Down into defined stages and manageable parts that may be reported on individually. This allows the auditor to keep a focus on the objective at hand, and report before going on to deal with the next part.
For example, a corporate system, which has been devolved? Down to departments like employees, time- budgeting, or expenditure processing, may be cracked down into sections relating to each department.
Budgeted hours must be realistic and achievable. An alternative approach is more basic and simply states (for example):
LARGE AUDIT > 4 WEEKS (Approx 28 Days)
MEDIUM-SIZED AUDIT> 2 WEEKS (Approx 14 Days)
SMALL AUDIT > 1 WEEK (Approx 07 Days)
Extensions are not motivated as the auditor has to perform as much work as possible during the budget hours and then move on to the next job. The adopted policy should be described and detailed in the audit manual since work done on one audit detracts from work that might be done somewhere else. The extent of work done in such time frames relies upon on the skill and experience of the Individual auditor. A performance appraisal scheme benefits those who deliver quality reports within the time constraints. There are two different views.
One wants to perform the audit terms of reference to the full no matter how long this takes, even if budgeted hours are expanded. This normally involves extensive testing and an inability to defer parts of the audit to a later stage.
The other view is that audit management sets a defined number of hours according to the level of risk attached. When this budget expires the auditor must transfer to another work area, so recognizing the risks of not dealing with the next planned audit.
The auditor becomes too closely associated with the operation, asking for more and more time to devote on the audit. The correct position is to provide budgeted hours for the audit and then remove the auditor from the work once this has expired until there are exceptional circumstances. The working file will show what work is excellent that may be postponed to the next audit. Auditor attachment can lead to audit saturation where there has been too much time spent by the audit team on only one area of risk.
Auditors can be drafted in to deal with each department if a suitable programmed of work has been prepared and explained and the work programmed requires extensive testing and interrogation of the corporate database. Once gathered, it can be done by a variety of resources as time –budget on the starting point project volume
Conclusion: A practical audit is achieved within time - budget to professional audit standards and as a full release of its objectives. The auditor will also be concerned that compliance issues have been addressed by management and Implementation Standard The internal auditor should consider the probability of significant errors, irregularities, noncompliance, and other exposures when creating the engagement objectives.
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