Name

Monograph - AuditNet Internal Audit Manual Template (Feb 09)

Description

AuditNet Internal Audit Manual Template - this is a comprehensive audit manual that I developed while working as an audit manager and internal audit director. The manual is available in word format to Premium subscribers and may be adapted and modified for use in your audit department. It cannot be sold or offered to others without the express permission from AuditNet. The associated data files are available to Premium subscribers for download in a zipped file (search for AuditManualDocs). 

Table of Contents

Foreword: AuditNet® Monograph Series - Guides for Auditors 5
Editorial comments on the Internal Audit Manual Monograph 6
CHAPTER 1 INTERNAL AUDIT’S MISSION 7
Introduction 7
Internal Audit's Role 7
Internal Audit Services 8
Audit Services 8
Consulting Services 8
Special Investigations 8
Internal Audit Standards 8
Auditor Independence 9
Process Overview 9
Planning 9
Survey 9
Fieldwork 9
Communicating Results 9
Audit Follow-up and Resolution 9
Auditor's Annual Independence Statement 10
CHAPTER 2 AUDIT PLANNING PROCESS 12
Introduction 12
Planning for the Audit Office 12
Planning for the Audit Assignment 12
Policy 13
Audit Project Purpose/Objectives 13
Procedures 13
Strategy Meeting 14
Audit Announcement 14
Planning Memo 14
Director's Approval 14
Deliverables 14
Audit Assignment Form 15
Standard Audit Program 15
Working papers: 15
Planning Memo: 15
Engagement Memo: 15
Entrance Conference Summary 15
Quality Control Checklist 15
CHAPTER 3 PLANNING SURVEY AND RESEARCH 16
Introduction 16
Definition 16
Policy 16
Purpose/Objectives 16
Audit Objectives: 17
Audit Program 17
Procedures 17
Standard Audit Program 17
Assignment of Audit: Based on the Annual Audit Plan 17
Strategy Meeting 18
Engagement Letter 18
Entrance Conference 18
Conducting Survey Activities 18
Prepare Systems Documentation 19
Conduct Interviews 19
Flowcharting 19
Internal Control Questionnaire 19
Management Controls 19
Risk Assessment/Internal Control Evaluation Worksheet 19
Analyzing Survey Results: 20
Audit Program for all Audits 20
Supervision & Quality Control 20
Outputs/Deliverables 21
Engagement Letter 21
Entrance Conference 21
Risk Assessment/Internal Control Evaluation 21
Finding Development Sheet(s) 21
Audit Program 21
Workpaper Review Sheet 21
Quality Control Checklist 21
Introduction, Purpose and Scope, and Methodology 21
CHAPTER 4 FIELDWORK 22
Introduction 22
Definition 22
Policy 22
Purpose/Objectives 22
Procedures 22
Audit Program 22
Estimate Time and Resources 22
Director's Approval 22
Collecting Evidence 23
Working papers 23
Audit Findings 23
Director's Briefing 23
Supervision and Quality Control 23
Preparation of the Audit Report 23
Potential Audit Areas 24
Outputs/Deliverables 24
Comments and Recommendations 24
Conclusion and Opinion 24
Independent Review Sheet 24
Quality Control Checklist 24
Indexed Draft Audit Report 24
Risk Assessment/Internal Control Evaluation Worksheet 24
Potential Audit Areas 24
CHAPTER 5 REVIEWING INTERNAL CONTROLS 25
Introduction 25
Definition 25
Policy 26
Purpose 26
Control Activities 26
Risk Assessment 26
Procedures 26
Methods of Documentation 28
Walk-Through of Transactions 28
Flowcharts 28
Risk Assessment/Internal Control Evaluation Worksheet 28
Questionnaire 29
Outputs/Deliverables 29
Working papers 29
Risk Assessment/Internal Control Evaluation Worksheet 29
CHAPTER 6 AUDIT PROGRAM 30
Introduction 30
Definition 30
Policy 30
Procedures 30
Audit Procedures 31
Objective 31
Conclusion 31
Summary of Work Performed 31
Program Preparation Methodology 31
Outputs/Deliverables 32
CHAPTER 7 WORKING PAPERS 33
Introduction 33
Definition 33
Policy 33
Purpose/Objectives 33
Audit Procedures 34
Working Paper Arrangement 34
Control and Access 37
Standard Forms 37
Workpaper review 37
CHAPTER 8 WRITING AUDIT REPORTS 40
Introduction 40
Definition 40
Purpose/Objectives 40
Policy 41
Procedures 41
Guiding Principles 41
CHAPTER 9 AUDIT RESOLUTION AND FOLLOW-UP 53
Introduction 53
Definition 53
Policy 53
Purpose 53
Procedures 53
Discussion Draft: 53
Exit Conference 53
Department Response and Action Plan 53
Late Response 54
Major Unresolved Recommendations 54
Final Report 54
Follow-up 54
Status of Major Recommendations 54
Outputs/Deliverables 54
Audit Working papers 54
Audit Follow-Up Schedule 55
Memo to Department Head 55
Status of Major Audit Recommendations 55
CHAPTER 10 FRAUD REPORTING & INVESTIGATION 56
Introduction 56
Definition 56
Policy 56
Fraud Indicators: 57
Red Flags 58
BUSINESS RELATED RED FLAGS 59
PERSONNEL RELATED RED FLAGS 61

Standard (Non-IT) Audit Program

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