Developing the audit program

A primary goal of an audit program is to provide a guideline for financial accountants who perform audits and to document all actions and calculations made during auditing processes. Internal audits are those that serve the needs of managers and financial strategists who aim to improve an organization's profitability and perform risk management. Audit programs for internal operations should be based on needs dictated at the executive level by financial managers and officers.

Regulatory agencies also perform audits. These processes ensure that organizations properly report their earnings, pay necessary taxes, and adhere to other regulations. In these cases, an audit program should help an auditor to determine if an organization's financial practices are in compliance.

Most professionals who have to develop audit programs do so to perform internal audits. While there are some elements that are present in most programs, styles can vary from organization to organization. If this is your first time developing an audit program, it can be a good idea to consult a financial manager. He or she can offer valuable advice regarding preferred formats and prioritization of information.

A typical audit program might be in the form of a spreadsheet in which columns run vertically and horizontally across a page. In the left hand column, you may want to list the steps of an auditing process in chronological order. Make sure the audit process and methodology is well documented and added to the annual audit plan. This should be easy to understand and explain all critical items and processes that are completed within your audit program.

Reviewing and analyzing data for the year is easier when it has been summarized in pie charts or other visuals. Create reportable action items that can be assigned to management. From there, you can base notifications on due dates and hold management accountable for responses. Define audit tests and schedules based on a repeatable process.

Then create reports and oversight charts to manage the process and make sure the testing is accurate. Once admins have been trained and data is in the audit software, create a few pilot department managers to help with any new processes. Map out tasks, capacity, and time requirements to ensure that the overall audit timeline and any due dates are reasonable for the organization. Andrea Tolentino is a c ertified b usiness r esilience a uditor CBRA and principal solutions consultant at Quantivate.

March 27, Andrea Tolentino. Internal Audit Program Steps Internal auditing is a key activity to ensure that your organization is compliant with applicable regulations and laws. I would say the following are key components: 1. Track risk assessments annually and centrally. Review management requests and items for internal audit plans. Manage internal and external findings with a notification tool.

Determine the required level of management response to internal audit findings. Define the methodology for risk assessments and audit processes and add to the audit plan. Create oversight reports for trends and gap analysis. Mitigate and manage external findings through action items.