Audit Class Describe in your own words, the audit management process This is the

Question

Audit Class

Describe in your own words, the audit management process This is the info provided for the professor. The audit team leader is authorized by the company or organization to manage the planning performance of the audit, including the management of the audit team. Some of the responsibilities delegated to the audit team leaderare: .Developing and gaining audit authority approval of the audit schedule .Planning the details of audits ning and preparing for audit team safety needs .Conducting the audit .Resolving Conflicts Formally reporting the audit results Following up on actions taken as a result of the audit The team leader is ultimately responsible for all phases of the audit. The audit team leader's responsibilities also cover: .Assisting in the selection of the audit team members Preparing the audit plan and making effective use of resources .Representing the audit team with the client and auditee Main ning the ethics of the audit team tal Directing the activities of audit team members Providing guidance to auditors-in-training .Defining the requirements of each audit assignment .Complying with applicable auditing requirements Preparing working documents and briefing auditors as required Reviewing documentation .Reporting critical nonconformities and conclusions Reporting obstacles in performing the audit .Reporting audit results

Explanation / Answer

The audit process consists of the following steps which are equally important, so we cannot ignore any:

Exploration: at this stage is made the study or previous detailed analysis of the characteristics of the entity to be audited in order to have the necessary elements to allow adequate planning of the work to perform and aim its methodology to issues that are of interest in accordance with the objectives set.

It also allows assessing the degree of reliability of internal control (accounting and administrative) as well as elaborating in the planning stage a work plan that is more efficient and rational for each auditor, ensuring that the audit will be performed with due quality, economy, efficiency and effectiveness; propitiating largely successful implementation.

At this stage those responsible for the audit conduct interviews with key leaders of the organization to audit in order to explain the purpose of it, and meet or update detailed data in structure, amount of dependency, development of the activity carried out, flow production or services provided and other essential background for proper planning of work to be done.

Planning: fundamental work at this stage is to define the strategy to be followed in the audit to be undertaken. Based on the expected objectives and scope for the Audit and considering all the information gathered and knowledge gained on the entity in the exploration stage, the group leader proceeds to plan the tasks to develop and checks required to achieve the objectives of the audit. The leader should also determine the relative importance of the issues to audit and reassess the need for personnel in accordance with the evidence available. After the time has been determined to be used in the execution of each check or verification, we proceed to develop the global or overall audit plan, which should be collected in a document containing at least:

• Defining issues and tasks to be performed.

• Data of analysts who will participate in each of the tasks.

• Scheduled start date and completion of each task. It is considered from exploration to the completion of work.

Also individual work plan of each specialist is constructed, considering at least:

• Specialist name.

• Defining the issues and each of the tasks to be performed.

• Start date and completion of each task.

Any extension of the term plans must be approved by the supervisor or other higher level; making it recorded in the audit file. According to the criteria of the group leader, both overall audit plan and the individual of each specialist may be included in a single document in response to the number of tasks to be performed, number of subordinate specialists, etc.

-All members of the Audit have understood clearly and satisfactorily, the audit plan, and have no personal impairments that limit their participation in the work.

Execution: The main purpose of this stage is to gather the evidence to support the views of the auditor regarding the work done. It’s the stage that depends largely on the degree of depth of the two previous stages, and in which the working papers, note sheets and other instruments that exceptionally support the view of the acting auditor are made.

Report: At this stage the Auditor formalizes in a document the results to which the auditors came to with the audit performed and other checks related to the audit work. Communicate the results to the highest level of management of the audited entity and other administrative bodies and to the appropriate authorities, when applicable. The report is made from the summaries of the issues and of the Acts of Notification of Audit partial results that are developed and analyzed with the audited respectively in the course of the audit. The preparation of the final audit report is one of the most important and complex phases of the audit, which requires extreme care in its preparation. The audit report should have a uniform format divided into sections to facilitate the reader a quick location of the content of each.

The audit report must comply with the following principles:

• It is issued by the head of group auditors acting.

• It must be written.

• It must be timely.

• Must be complete, accurate, objective and convincing and clear, concise and easy to understand.

• All that is stated is reflected in the working papers and responding to relevant findings with sufficient and competent evidence.

• reflect an independent attitude.

• Show the rating as assessed by the results of the audit.

• Have a prompt and adequate distribution.

Tracing: At this stage the results of an audit are followed, as the word says. It is spent a period of approximately six months or a year back to perform another audit of recurrent type to check true fulfillment of the deficiencies identified in the audit.

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