The Audit Process: A collaborative Effort

Your involvement at every stage of the audit process is extremely important. The process works best when management and the internal auditor have a solid and constructive working relationship based on clear and continuing communication. Although every audit project is unique, the audit process is similar for most engagements and normally consists of the following stages:

. Entrance Conference - The Entrance Conference is the very first meeting of the audit process involving the internal auditor, upper management, and other members of the department being reviewed. Objectives of the review and completion dates are discussed as well as concerns that management may have.

. Preliminary Survey and Internal Control Review - This is the most time consuming stage of the audit and includes gathering information about your processes and reviewing and evaluating the existing internal control structure.

. Fieldwork - Fieldwork involves performing tests and examining transactions, documents, and records.

. Exit Conference - The Exit Conference signals the end of the fieldwork portion of the audit and involves issuing a draft report to management for review and comment. Normally those who attended the Entrance Conference are in attendance at the Exit Conference.

. Audit Report - You will receive a written report at the end of audit process that includes an overall opinion, audit results, recommendations, and management actions to be taken. Internal Audit solicits comments and suggestions from management prior to issuing the final report.

. Follow-Up - Within approximately one year of the final report, Internal Audit will perform a follow-up review to verify the resolution of the audit recommendations.