The Auditing Cycle
Audits usually consist of the following steps:
Planning - The Internal Auditor meets with the department
heads and the staff responsible for the function to be audited.
This enables the auditor to understand the process being audited
and the controlled environment. The Internal Auditor develops an
audit program to outline the testing that will be performed to ensure
controls are designed to function as management expects. The Internal
Auditor will often develop flowcharts to document the process of
being audited.
Testing - The Internal Auditor will test a sample of transactions
and processes and express an opinion on the controlled environment.
As a result of testing, the Internal Auditor will recommend audit
improvements when noted.
Communication and Reporting - An informal summary of findings
is shared with staff directly involved in the audit for their comments.
A draft audit report is prepared and discussed with department management.
The final report is discussed with department heads and County Administration
before it is distributed. The Internal Auditor requests a written
response to the audit recommendations within ten business days of
the report issuance date.
Follow-up - The Internal Auditor generally performs a follow-up
within six months on corrective action plans to address audit recommendations.
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