Conducting an internal audit is no small feat. Here are the top steps followed by internal audit consulting services to ensure a smooth auditing experience.
Planning
The first step any internal audit advisory services does is to engage in active planning. Start by clearly defining the scope and objectives of the internal audit. Properly assess the risk assessment, management priorities, and regulatory requirements, and discover the key areas that require an audit. Your audit plan should have clear information on the timeline, methodologies, and resources utilized in the process. Having a proper strategy in the initial phase lets you start strong.
Collecting data
The internal audit consulting services engage in an active data-gathering process, which includes collecting proper documents, policies, and procedures in connection with the audited area. You can make the process easier by looking through the previous year’s financial statements, audit reports, and other performance-related data. You can further gain insights into the process and operations by conducting interviews with top personnel in the organization. This will make sure that you do not miss out on any key details during the internal audit process.
Risk assessment
To ensure a smooth audit, audits need to carefully evaluate the risks associated with very specific audit areas. They will effectively identify potential risks and the impact they will have on the business operations. To make things easier, internal audit advisory services engage in prioritizing high-risk areas and further examining them to avoid hiccups during the audit.
Testing and analysis
Auditors need to conduct thorough testing of all the controls and processes to move forward with the audit. Internal audit consulting services examine the functionality of internal controls by conducting sampling techniques. You can examine the data for any irregularities, the latest trends, and compliance with the in-built policies.
Reporting
You need to make a thorough report, highlighting observations and recommendations. Submit the report to the concerned management and suggest recommendations for improvement. It is always advisable to include a report showcasing the scope of the audit, key methodologies, and other findings.
