Audit management is the process of identifying the scope of an audit, assigning resources, creating checklists, and reviewing evidence. The senior auditor is responsible for the process and creates the audit plan, assigns tasks, and manages the audit checklist. Process control is important, and evidence is used to support the final audit opinion.
An audit is a formal review process by an independent third party. Audit management refers to the overall process or system used to identify the scope of the audit, assign appropriate resources, create the audit checklist, and review all evidence-gathering documentation. The most common type of audit is a financial audit, during which details of financial transactions are researched and validated for accuracy and completeness. An audit can be performed on any process or system where there is an established process or policy. Actual transactions or data are compared against the policy to determine the level of compliance.
The audit management process is primarily the responsibility of the senior auditor or head of the audit department. He or she receives an internal person or department that has been selected for audit. In many organizations, senior auditors meet regularly to review upcoming projects and audit engagements and determine how the work will be divided.
The senior auditor meets with the client, reviews their objectives and creates the scope of the audit. This document clearly identifies review areas, expected timeframe, high-level resource allocations, and required access. For example, in a financial audit, the scope is limited to financial transactions included in or having an influence on the financial statements. Health and safety compliance is typically excluded.
The next stage in audit management is to review the work that must be completed, timeliness, conflicting assignments, and staff availability. In most cases, there will be an audit technician and one or two auditors who will report directly to the senior auditor. He or she will create an audit plan and assign different tasks to employees at the appropriate levels.
An audit checklist is an audit management tool created as part of the audit plan. This document is managed by the senior auditor and updated as tasks are assigned, initiated, completed, reviewed, and finalized. The length of the checklist can vary depending on the scope of the audit, but it generally has a minimum of 25 items to complete.
A central component of audit management is process control. As each audit checklist item is completed, the team member provides the senior auditor with a package of evidence, tests, conclusions, and a summary report. These documents form the basis of the audit file and are used to support any statements or conclusions included in the final audit opinion.
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