The three main stages of the audit process are the pre-audit, audit, and post-audit. During the pre-audit the most important things are planning and execution. The first part of the pre-audit is scheduling the audit. Every facility in the organization will need to be audited so creating a schedule will allow for preparation time. Production schedules, management schedules, vacation time, and time between audits are all important and this needs to be organized to have an efficient audit. Proper communications goes hand in hand with scheduling. The auditor needs to communicate all that will be expected prior the audit to ensure that employees or other considerations are in place. The next thing that needs planned for is the number of auditors. …show more content…
This will be done over a short amount of time compared to the pre-audit phase. Full attention will be put on the audit. The first part of the audit is always the opening conference. This is where the auditor will communicate with everyone that has stake in the audit. Anybody has is under the scope of the audit and will be correcting deficiencies needs to attend. Communication on audit phases, audit scoring and arranged meetings need discussed. The next part of the audit is to conduct a tour of the whole facility to become acquainted with it. Then before the actual inspection of the facility it is best to sit down and do a review of the documentation. The auditor will go through written programs and supplemental information relating to those programs. This can be time consuming so ensuring that this is communicated properly during the pre-audit is key. After the review comes the actual facility inspection. The auditor will inspect every area of the facility covered under the scope. Employee interviews can be conducted either during the inspection to act as a break or all together following the inspection. Following the interviews some training may occur. The auditor may train managers on how to better manage issues under the scope of the audit. Then follows the closing conference where all the stakeholders from the opening conference come together to discuss the findings of the audit and the
The key process cycle that I have chosen for Loblaws Inc is the Sales and Collection cycle. I believe the high volume of sales that the company has and many different accounts with small balances ranging from cents to millions increases the engagement risk while planning and performing an audit.
Accounts receivable balances are tested by sending confirmation letters to customers to obtain objective assurance that the balance is correct. The auditor also chooses sales transactions from the sales ledger and verifies that there are legitimate sales receipts to back up the transaction. To test the accuracy of the sales figure, the auditor reviews sales transactions in the ledger close to the financial statement date to ensure that the company only included sales prior to that date.” What Are the Audit Procedures for the Sales & Collection Cycle? (n.d.).
Objectivity also needs to be evaluated to make sure the internal audit is reliable. The internal audit needs to be free of conflicting responsibilities as well
The seven best practices in the roles and responsibilities of an internal audit function include:
This step entails reviewing the performance of the staff whether it’s as a whole or individually. The team collects any info from the previous steps and assess the team/individual within a meeting where staff can respond with feedback.
Equity traps in education are ever-present dangers/temptations for faculty and administration alike. Since these traps involve placing blame on others or other organizations, they are very seductive. However, the tools of high-quality teaching can help instructors avoid—or free themselves—from such equity traps.
Then I will talk to them about the employees they manage and go over the things that seen with them. What I am looking for is if they are seeing the same issues that I saw during my initial assessment. If they allow negative aspects of work then as a department we will be unsuccessful because they are the middle managers and control the floor. Next I will bring in the rest of the employees to go over my assessment. I will start by asking " what is their purpose in the department and what do they bring to the department?
The HoneyTree was hired by another company to conduct a security audit to examine the vulnerabilities of its information systems. To complete the security audit, it must be determined if there are vulnerabilities of its informational system. The set up and the overall security of the network area will be tested. The company is a five building campus. All five buildings, inside and outside will be tested. The perimeter of the campus will also be tested to make sure that no internet service is outside the campus. In order to complete the audit a list of all users, databases, and passwords will be needed. Access to the grounds to observe who has access to what will also be crucial. Going in and out of buildings into rooms will help identify which rooms have computers and who has access to them. Access to servers and the central hub will also be needed to test the security.
Monitoring, Review and Revision of Plan - ensures that it remains current. In addition, the monitoring process is backed up by full managerial accountability for the success of the plan.
The organization will be able to review profitability, this will make it so the organization can see where they are making money and where they aren’t. The organization will be able to give performance evaluations once they see the review of the budget they can break down to see what employees did good or bad.
Audit is a process to evaluate and review the accounts and financial statement objectively. We can divide it into internal auditors and external auditors. Internal auditors have a inner knowledge of business process. Auditor has access to the much confidential information and all levels of management. But they may lose their judgement and they are not acceptable by the shareholder. “The overall objective of the external auditors is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to report on the financial statements in acco...
The major characters of the tradition audit are all information what is needed by auditors are on the paper and the manual calculators and without high communication technology. Auditors usually were limited by the place in the paper time. When a several people are working on the same auditing project for a client with offices in cities across the country, even worldwide, it takes a lots all time those auditors get the information which they need from the client, even there is risk paper information disappear for many reasons. on the another hand, mail paper information increase the auditing cost. The mistake caused by the manual calculators inevitably, no matter how fixed auditors concentrate on recalculate is, after all auditors are human. The global business become major in the modern business world, some example, several auditors who are in different locations are working a same auditing project, or auditors are in different city even country with the client, when there is issue among these auditors or between auditors and client, they only can communicate with each other by phone or be together and have meeting. Phone call can not make sure information been watched in the same time when the voice is talking about the issue, but having a meeting takes time and money make all people together, it increases auditing cost.
...ction. Product development, service delivery, materials purchasing, product design, and manufacturing operations must all be included. I Auditors will look for continuous improvement in the system. These improvements can include better education of employees, better communication of ideas from and to employees, better reporting of environmental impacts within the company, and improved identification of environmental aspects. ISO 14000
Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.
The procedure is into two phases. In the first phase, an administrator is appointed to run the company’s affairs but also to investigate the financial state of the company and to report the findings to the creditors along with recommendations.