Opening Conference
The opening conference should be held to gather information about the mission, critical processes, and control procedures of the unit to be used in the preliminary survey process. The auditor uses this information to determine an appropriate objective and scope for the audit. The auditor should prepare an opening conference e-mail confirming the appointment. The e-mail should briefly state the announcement of the audit; the date, time, and place of the opening conference; the purpose of the opening conference; and the desire to resolve any questions regarding the tentative draft objective and scope.
Audits with a surprise component, such as investigative audits, cash counts, etc., may not have opening conferences. If a considerable amount of fieldwork will be completed after the surprise component, an opening conference should be conducted after the surprise work is finished.
The opening conference is an important step in a regular audit. It is an opportunity to establish the proper tone and to begin building good relationships. Explain the who, what, where, when, why, and how for those who have not been exposed to the audit process.
During the opening conference:
- Provide and discuss the Office brochure.
- Explain that our audit will focus on evaluating their business and financial procedures in regard to internal controls and good business practices.
- Emphasize that the purpose of an audit is to help improve controls and operations, not to find something wrong.
- Review the objective(s) and scope of the audit, encouraging management to discuss any aspect of the audit.
- Ask for suggestions of potential client problem areas within the audit scope. This communicates an intention of being helpful rather than critical.
- Determine what assistance from personnel other than those attending the opening conference is needed to answer detailed questions concerning the functions being performed. Contact should be made via the "Chain of Command" until an understanding with the appropriate manager is established.
- Explain how audit concerns (observations) are handled. Explain that concerns will be reviewed with the designated client at the time they arise and identify who will be responsible for reviewing the audit concerns. Explain the purpose of discussing each audit concern is to verify that both the facts defined in the concern and the impact of the concern are accurate. Some findings may be resolved orally.
- Establish how frequently the department head/director wants to be updated on audit progress and findings.
- Explain we will review the draft audit report in detail at the exit conference. Explain to the client that Internal Audit will request a formal response from management to the audit report within approximately 30 days after issuance of the final report if concurrence with the audit comments or the implementation dates are missing.
- Explain that a copy of the final audit report will be sent to the Audit Committee (or other appropriate staff) (this list will be reviewed at the exit conference).
- Explain that any information obtained during the audit is considered confidential.
- Inquire about working hours, working area, access to records, and any other information that details the office routines. This information may have considerable influence on the cooperation extended to the audit staff.
- Identify information needed to complete the audit procedures.
- Establish a tentative schedule for the draft report based on the budgeted project hours. The purpose is to establish a goal to work toward and to provide the client an estimate of the time we will be in the client area.
- Ask if there are any questions concerning anything discussed at the opening conference or any questions in general about the auditor or audit approach that will assist the clients in their understanding of the audit project.
Effective communication at the beginning of the audit can materially influence the tone in which the entire audit is conducted.