Internal Audit Department Name of Audit Audit Program

Objectives: Scope:

AUDIT STEPS TO BE COMPLETED

COMPLETED BY

W/P REF

A. Planning and Administration Section

1. If this is a repeat or follow-up audit, review the Permanent File and prior working papers, including policies/procedures, organizational charts, agreements, etc 2. Conduct pre-audit interview with auditee and document discussions held. 3. Conduct audit planning meeting with Audit Manager and/or Director and document discussion held. The following should be discussed: Timing of audit kick-off meeting / planned participants in the meeting Timing of fieldwork Risk areas / internal controls Audit objectives Assignment of audit objectives (if more than one auditor is working on audit) Consideration of the impact of authoritative accounting literature or legislation Testing to be performed (if this can be determined at this time) Budgeted hours Engagement memo

4. Prepare engagement memo and obtain approval from the Manager and Audit Director. 5. Schedule the audit kick-off meeting with applicable management. Include a meeting agenda in the meeting request (or send soon thereafter). Discussions held should be documented and include the following: Timing of the audit Audit objectives Key contacts for the audit

Q:

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AUDIT STEPS TO BE COMPLETED 6. Send an information request list to the auditee. Items to consider: Relevant agreements/contracts Organizational charts Relevant reports utilized by the auditee Strategic documents (e.g. business plans)

COMPLETED BY

W/P REF

7. Prepare (or update) the process narrative to document the process under audit based on discussions held with individual familiar with the process. 8. Inquire of the auditee as to whether any relevant process flowcharts exist. If not, consider developing one for the permanent file. 9. If the audit involves an outside company (particularly a financial institution or insurance company), determine if a SAS 70 Report (Report on Internal Controls Design and Effectiveness) has been issued on the company. If so, obtain a copy and determine if this will impact the audit.

B. Fieldwork
1. First Objective

a. Conduct a walkthrough of the process to determine if there are any

design issues and to verify that procedures exist. This should be completed by inquiry and observation with the process owner and staff. Complete or update the process narrative b. Perform testing of transactions to evaluate the effectiveness of the controls

c. List general test steps to be performed (link to detailed test plan if

necessary) d. e. f. 2. Second Objective

a. Conduct a walkthrough of the process to determine if there are any

design issues. This should be completed by inquiry and observation with the process owner and staff. Complete a process narrative. b. Perform testing of transactions to evaluate the effectiveness of the controls c. List general test steps to be performed (link to detailed test plan) d.

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AUDIT STEPS TO BE COMPLETED e.

COMPLETED BY

W/P REF

f.
3. Add Additional Objectives as Necessary

C. Communicate Results 10. As testing is completed, any issues found should be communicated to the auditee to confirm the results. 11. After verification of the issues, a summary of findings form should be completed and sent to the auditee so that a response (i.e., action plan and target date) can be developed. 12. Submit workpapers for manager review as audit steps are completed. This will help facilitate timely review. 4. Clear all appropriate review notes. D. Close Out and Submit Report 13. Prepare Draft Report and submit for review. 14. Complete the Audit Report Checklist and include in the work papers. 15. Conduct an exit meeting with auditee to discuss issues noted during the audit and obtain agreement on the issues. 16. Communicate to the auditee their responsibilities addressing the issue found. 17. Discuss the recommendations, action plans and timelines for addressing the issue. 18. Based on the discussion, make any necessary changes to the report and submit for appropriate review. 19. Issue Final Report after review is completed. End Of Audit Steps

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