The Internal Audit process is most effective when it is a collaborative effort between the auditor and the auditee. Internal Audit seeks open lines of communications with auditees throughout the audit process.
There are 3 main phases to an audit:
There will likely be meetings and communications prior to the formal audit entrance meeting in order to develop the scope and plan the audit. Once the scope, objectives, and timing have been determined, Internal Audit will issue an audit entrance letter to auditee management. Internal Audit will hold an entrance meeting with auditee management to discuss the scope, timing, and objectives of the audit.
Internal Audit will typically:
- review documented policies and procedures
- inquire of audit staff and management
- walkthrough processes
- obtain documentation to test to determine whether procedures are in place and operating
Internal Audit will communicate potential issues as soon as they are identified throughout the audit.
Internal Audit will develop recommendations for management response. A written report will be issued that includes the recommendations and corresponding management responses. The report will be addressed to auditee management with copies distributed to the Vice President for Finance & Business Operations, the Audit Subcommittee and others as needed.