Audit Services

Approach Towards Audit

  • The scope of internal auditing should encompass the examination of the adequacy and effectiveness of the organization’s system of internal control and the quality of performance in carrying out assigned responsibilities.
  • Assessment (adequacy and effectiveness).
  • Enhancement (measuring performance quality Improvement

Audit Objective

  • The organization in the effective discharge of their responsibilities.
  • The audit objective includes promoting control at Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization.
  • The objective of internal auditing is to assist members of reasonable cost.

Designing Audit Tests

  • Evidence is created from tests or questions.
  • The creation of the right test or question to ask is a process of working backwards from the audit objective.

Corrective actions

Effective statements of corrective action include:

  • The specific steps to be taken,
  • The completion date and
  • The person responsible for completion.
  • Test description or question.
  • Results (clearly stated).

Documentation of test results and conclusions.

Automated Work Papers provide

  • A framework to guide the audit process.
  • Support for the conclusions reached by the audit.
  • A record of the audit process and its conformance to standards.

Discussion of draft report with managemaent

  • To avoid misunderstandings.
  • To give management a ‘heads-up’ about issues.
  • To encourage corrective action as soon as possible.
  • Cross-reference the audit point sheets to the conclusions in the audit work papers (and backreference the conclusions to the report).

Audit Tracker

  • Contacts (of auditee/ audit team)
  • Status Tracker (Scope, Start Date, Completion date, Reason for Pending, responsibility, Population, Sample, Sample methodology, remarks)
  • Review Notes
  • Requirement Tracker (Requirement, Area, Responsibility, Request Date, Received date, Time Lag in receipt of data, days lapsed)
  • Checklist (Scope, Sub scope, Risk, Control, Checkpoints, Population, Sample, Exceptions, Observations, Backup paper)
  • Query Sheet (Query, Financial Impact, Risk, recommendations, Area, Annexure, Resolved, Response, Responsibility,Reportable/Dropped, Backup paper)
  • Audit Completion Checklist.

Risk Identification

Analysis of processes:Will facilitate identification of the operational risk

Brainstorming: A group of employees put forward their ideas or sensations of risk

Interview: Interview with various management level members in order to elicit their concerns

Workshops: Meeting the employees in order to identify the risks and assess impact

Comparison with other organisations: Benchmarking is the technique used for comparing one’s own organization with competitors

Risk Evaluation

After identifying and analyzing the risk, next step is the evaluate the risk.

1.What is the likelihood of the risk event occurring?

  • Probability
  • Almost certain
  • Likely
  • Moderate
  • Unlikely
  • Rare

What is the consequence if the risk event occurs?

  • Impact
  • Extreme
  • Very High
  • Moderate
  • Low
  • Negligible

Components of Risk Evaluation

Professional Approach Of The Main Partner

  • Ensure a positive link between the audit objective and the entity’s goals.
  • Ensure the audit program will produce the evidence as required.
  • Ensure that each test will provide the evidence required by the audit program.

Commitment To Excellence

  • Ensures all aspects of problems (findings) are captured.
  • To provide time bound services with total client solutions.
  • To develop dedicated industry practice driven by industry experts.
  • To create an organisation in which team feels proud to work & client feels prestigious to be associated with.