The expanding complex nature of the regulatory scenario is driving organizations to look for an all-encompassing and integrated approach to deal with the entire life cycle of their audit management. Also, the role of auditors is not limited to just reviewing, it now has advanced to where auditors are expected to perform roles which help organization’s improve business processes.
The renewed role of auditors calls for a methodical approach to audit management. The basic steps given below will help the organization to provide a solid framework for audit management process.
Audit Planning and Preparation
Audit planning is important as it involves designing an audit plan which includes all audits that need to be conducted within a particular timeframe, the purpose of carrying out an audit, the insights which would be derived from the process and identifies the stakeholders who will be involved in this audit process. Audit preparation involves setting up communication channels among stakeholders and ensuring availability of all resources like records and documents which would facilitate a smooth audit process. Audit preparation also involves training the personnel involved in the audit process accordingly.
Audit Execution and Fieldwork
Many times, the data available is insufficient for carrying out audits or the data type does not suit the audit process. This would require the audit team to go data hunting in the organization. The fieldwork involves collecting and analyzing data to assess the effectiveness of internal controls of the organization. Audit Execution involves interacting with the relevant stakeholders, validating documents, and analyzing data to drive meaningful insights.
Audit Reporting and Review
Audit reporting involves compiling all of the audit findings and deriving recommendations for implementation in the organization. A more proactive and predictive approach would help organizations mitigate any possible risks in the future. The audit report should be reviewed by the management. This report is used by the management to quicken their decision-making process and reduce the turnaround time for the implementation of necessary measures. Auditors might be required to reassess some parts of the audits if they are not in sync with the present findings of the organization. Mostly internal audits are carried out on a small sample of data which is considered as a representation of the whole data population. Using Analytics, auditors can now analyze the whole data population in one go providing more accurate findings.
Corrective and Preventive Action
The audit reports carry more value than just a representation of the company’s performance. It acts as a source of information and insights which can be used by organizations to design corrective and preventive measures for execution within the organization. Corrective actions help to rectify the deficiencies which were evident in the audit. Preventive actions relate to implementing strong controls and checkpoints in the process so as to eliminate any possibility of errors in the future.
VComply provides effective Audit Management solution which supports the entire audit life-cycle activities along with intra-platform discussion boards for intra-organization discussions. The platform also supports document management making data collection easy for audits.
To know more about audit management, click here.
Add to favorites