Internal auditors must develop and record a plan for each audit engagement, including the scope, objectives, deadline and allocation of resources.
Planning Considerations
In planning the audit work, internal auditors should consider:
- The objectives of the activity under review and the means by which it controls its performance.
- The significant risks to the activity, its objectives, resources, and operations and the means by which the potential risk impact is maintained at an acceptable level.
- The sufficiency and effectiveness of risk management and activity control systems compared to a relevant control structure or model.
- Opportunities to make significant improvements in risk management and activity control systems.
– When planning an audit work to be performed by service providers (external to the organization), the internal auditors must establish with them a written agreement on the objectives, scope, respective responsibilities and other expectations, including restrictions on distribution results of the work and access to the respective records.
– Internal auditors must establish an understanding with clients of the consultancy work, in relation to the client’s objectives, scope, respective responsibilities and other expectations. For works of great importance, this understanding must be documented.
Objectives of the Audit Work
Objectives must be established for each audit work
– Internal auditors must carry out a preliminary assessment of the relevant risks related to the activity being audited. The objectives of the audit work should reflect the results of this assessment.
– The internal auditor must consider the likelihood of errors, irregularities, non-compliance, and other significant exposures when developing the objectives of the audit work.
– The objectives of the consultancy audit work should discuss risks, controls and corporate governance processes to the extent agreed with the client.
Scope of the audit work
The scope established should be sufficient to satisfy the objectives of the audit work.
– The audit work environment should include consideration of relevant systems, records, personnel and physical properties, including those under the control of third parties.
– If, during an assurance audit work , important consulting opportunities appear, a specific and written agreement must be established on the objectives, scope, respective responsibilities and other expectations and, the results of the consultancy work disclosed in accordance with consulting standards.
– When performing scheduled consultancy tasks, internal auditors must ensure that the consulting work environment is sufficient to discuss the agreed objectives. If the internal auditors create reservations about the environment during the performance of the consultancy work, these should be discussed with the client to determine whether to continue with the execution of the scheduled tasks.
Resource Allocation to Audit Work
Internal auditors must determine the appropriate resources to achieve the objectives of the audit work. The formation of the team must be based on an assessment of the nature and complexity of each audit work, the time limitations and available resources.
Audit Work Program
Internal auditors must develop work programs that achieve the objectives of the work. These work programs must be registered.
– Work programs should establish procedures to identify, analyze, evaluate, and record information during the development of the audit work. The work program must be approved before it starts and any adjustments must be approved promptly.
– Audit programs for consultancy work may vary in form and content depending on the nature of the work.
