Developing and Preparing an Audit Plan

An audit plan is an integral component of any internal audit project, providing auditors with an essential roadmap that outlines their strategy, extent and timing for conducting audit procedures.

At the same time, this strategy ensures that resources required for performing an audit are appropriate, sufficient and deployed effectively to meet the approved audit plan.

Identifying the Auditee
An effective audit plan is critical for successful auditing, as it allows auditors to gather sufficient appropriate evidence, keep costs within acceptable levels and prevent miscommunication with clients.

An audit firm will devise an overall plan for their audit engagement during this stage, including planned risk evaluation and responses to any material misstatement risks identified during analysis. They also determine what additional procedures need to be conducted at assertion level.

Planned Audit Services should identify members of their audit team as well as provide an estimated timeframe and communication and reporting expectations with clients’ management, board of directors or audit committee. In order to gain greater insight into business processes and functions being reviewed by conducting face-to-face interviews with key personnel. This allows auditees the chance to get acquainted with auditors before formal entrance conferences occur.

Identifying the Areas to be Audited
As part of an audit plan, it is crucial that you identify areas requiring attention. Policies, procedures, past safety inspection reports and other documentation can all help with this step; speaking to employees working within the department you plan to audit may provide more insight into potential areas of risk.

As you progress with an audit plan, keep in mind that changes can occur as it progresses due to changing client circumstances or business practices during an audit. Therefore, communication between yourself and the auditor during this process is vital so as not to cause misunderstandings or create unnecessary delays in its completion.

Some auditors utilize templates and checklists to assist with planning their audit. Although these may be beneficial, it is best to tailor them specifically to the area of a company you’re reviewing so as to cover all relevant topics while preventing any risk areas from going uncovered.

Identifying the Auditors
An audit plan is an essential document that documents all aspects of an audit. It should include planned audit procedures, evaluation results of records evaluated during initial tests conducted before final exams are administered, problems to be solved during auditing procedures as well as deviations from planned procedures as well as anything else which occurred during an inspection process.

An audit plan must also include a timetable, detailing when audit work will begin and the dates for fieldwork as well as when and how often audit team will communicate with client, such as by phone or email.

Finally, the plan must detail who will comprise the audit team. A typical team typically comprises a lead auditor, supervisor and three to five staff members – this can vary depending on client size and assessed risks; additionally it should consider resources like local teams that can mitigate language and cultural issues.

Identifying the Resources
Implementing an audit plan helps ensure professional audit work. Furthermore, an audit plan allows the auditor to keep control over audit costs by clearly outlining its scope.

The audit planning process begins by defining an overall strategy for engagement as well as risk assessment procedures and responses to identified material misstatement risks. Furthermore, this step checks if compliance with independence and ethics requirements has been fulfilled.

After completion of an audit, clients receive a draft report detailing all findings and recommendations. They then have an opportunity to respond and add any action plans they wish into their final audit report.

Audit resource requirements are determined based on several factors, including recommendations from OIA staff, City Council members, administration, complaints; the potential impact an audit would have; its sensitivity, complexity and difficulty; its breadth and depth across City government; as well as staff availability.