Internal Audit Process

• Step one plan and initiate the audit
• Step two research
• Step three entrance interview
• Pause for audit planning process check
• Step four audit program
• Pause for audit program process check

• Step five fieldwork
• Pause for audit results process check
• Step six exit conference
• Step seven reporting and administration
• Step eight follow-up

Step one - plan and initiate the audit

• Gather and analyze general client information
• Review prior audit reports
• Notify audit client
• Contact key executive or executives in the audit area

Step two – research

• Identify past projects and/or findings related to current audit area
• Identify compliance or criteria
• Organization charts
• Process flows
• Request documentation of process
• Flowchart out what you think the process is
• Search for best practices
• Perform trend analysis

Step three – entrance interview

• Present purpose, scope, approach, and audit objectives
• Establish communication protocol
• Present an audit timeline or schedule
• Discuss areas of concern

Step four – audit program

• Draft audit program
• Consider risk areas
• Include steps to test
• Finalize audit program
• Assignments to audit team

Step five – fieldwork

• Execute audit program
• Sampling
• Testing
• Interviewing
• Observing
• Document results

Step six – exit conference

• Present draft audit report
• Discuss findings and observations
• Agree on appropriate actions to be taken

Step seven – reporting and administration

• Draft report coordination
• Issue final report

Step eight – follow up

• Obtain evidence of management action closure
• Retain coordination documents