Steps of Audit Procedures
The audit procedures can be divided into two categories –
- Initial steps of audit
The audit procedure begins with notification which alerts the audited party about the date and time of the procedure. Planning, as the next step, is conducted by the auditor before the audit so as to recognize the main areas of risk and areas of concern. This step is generally completed in a series of meetings with the auditing staff thus leading up to the opening meeting between the auditing staff and senior management of the auditing target and administrative staff. The process undertaken by the auditor is described by him. Management describes the areas of concern to them in addition to the schedule of employees which must be consulted. Fieldwork, the next step, starts after the results of meeting are used to regulate the final audit plans. Employees are notified about the audit, schedules are drawn up with regards to the audit staff’s activities, and initial investigation commences after identification of business procedures, interviewing key staff, testing current business practices through sampling, reviewing the law and testing internal rules and practice for equanimity.
- The audit itself including
The next step includes communication. It is essential for the audit team to be consistently in contact with the corporate auditor to elucidate procedures. When the audit is accomplished, the draft audit is prepared as the next step. The draft audit describes what was done and found. The draft is provided to the management to review, edit and suggest changes probe areas of concern rectify errors. After making final corrections, the report is provided to the management for the seventh step, the management response. Management is then asked for answering the report by stating whether they agree with the cited problems, the plan to rectify noted problem and the anticipated date for addressing all the issues.
- Ending the Auditing procedure
The final meeting is projected to close loose ends, discuss the response of the management, and address the audit scope. The ninth step includes report distribution, where the final audit report is given to apt officials inside and outside the audit area. The final step includes the audit feedback which involves implementing the suggested changes as well as the auditors review and verifies the quality, adherence, and effects of these changes.