IT Audits

Aud

it Pr

oces

s Fl

owch

art

Site Arrival and Audit initiation

Finalize

Schedule and Agenda

Verify receipt of information as per Checklist

Review Documents and

Information gathered

Interview People to obtain understanding

 

Substantiate risk for

identified exposure

Audit and assess

compliance

Pre-Audit

Prepare Initial draft report

Submit to IT Audit Manager Accept

Submit to Senior

Management

Interim Closing Meeting

Attendees:CEO/CFO/ IT Manager

Send to IT Audit Manager

Senior Management

Review

Submission of Report to

Senior Management

Accept

Publish report to Unit

Business Owners

Yes

No

Yes

No

Remedial measures from Unit Business

Owners

Audit follow-up procedures and

dates

Submit to IT Audit Manager

Submit to Senior

Management

Final Closing Meeting

Attendees:CEO/CFO/ IT Manager

Gather Information and Plan• Knowledge of Business and Industry• Prior Year’s Audit Results• Regulatory Statutes• Inherent Risk Assessments

Our Methodology

Obtain Understanding of Internal Controls• Control Environment• Control Procedures• Control Risk Assessment

Perform Compliance Tests• Test Policies and Procedures• Test Segregation of Duties

Perform Substantive Tests• Analytical Procedures• Other Substantive Audit Procedures

Conclude Audit

Make recommendations  after correctly evaluating the controls for improvements within each of the five interrelated areas like:• Control environment.• Risk assessment.• Control activities.• Information and communication.• Monitoring.

Submit an Audit Report that is:• Accurate• Objective• Clear• Concise• Constructive • Complete• Timely

To:  ________________________________From:___________________________ Date: EXECUTIVE AUDIT SUMMARYI. INTRODUCTION AND SCOPE Entity Name: _________________________ Location: _______________________Segment : ________________________ Assets: (USD million) ______________ Bud. Ann. Sales: (USD million)__________________Bud. Ann. EBIT: (USD million __________________________ Business Description: (Provide information about the business and its links to other businesses or corporate office. Give list of services offered and how these are executed) ________________________________________________________________________________ ________________________________________________________________________________Scope: (Write about scope of the audit in terms of areas covered)  ________________________________________________________________________________ ________________________________________________________________________________Audited Period: ________________ II. AUDIT RESULTS____________________________________________________________________________________________________________________

Sample Audit Report

CriticalImportantMinor

AreaIssue Specific Rating

Findings & Root Causes Impact Recommendation Management ResponseFinding:

Root Cause:

Agree: (Yes/No)

Responsible Party (Person, Title):

Corrective Action Plan:

Target Date:

Audit Follow Up Date:

Findings Total Financial ReportingOperational Efficiency & Effectiveness

Compliance

Critical - - - -Important - - - -

Minor - - - -

Executive summary of our audit findings:

The table below details Audit findings:

Based on the overall audit strategy, we undertake medium term and annual Audit programmes to provide the required assurance. These will be drawn up by Internal Audit in consultation with the Concerned Authority and the approval of the Audit Committee. The programme’s are meticulously designed to:

Appraise progressively the soundness, adequacy and application of the internal control systems;

Ascertain the extent to which the system of internal control ensures compliance with the policies and procedures and State laws and regulations;

Ascertain that the system of internal control promotes the efficient and effective use of resources;

Ascertain that the system of internal control operates to ensure that the assets of the Organization are properly controlled and safeguarded from losses arising from fraud, irregularity or corruption;

Ascertain that there are adequate controls to ensure reliability of accounting and other information as a basis for producing accounts and for financial, statistical and other returns;

Ascertain that there is an adequate internal control system to ensure the integrity and reliability of financial and other information provided to the Governing Authority; and

Confirm compliance with laws, regulations and Government Guidelines.