Internal Audit Practice August 17, 2018 – Posted in: Essay Help Online, Free Essay Help Online
Internal Audit Practice
(Internal Audit Practice)Developing an audit plan for implementation during an internal audit process requires the auditors to take several distinct steps that ensure and guarantee the success of the whole assignment. The first step is to develop a mission for the entire audit assignment. This involves setting up goals that require to be achieved over the course of the assignment. The goals relate to the processes and activities that require to be undertaken. The second step is to understand the organizational plans and assessing the capability of the organization. Doing this allows the auditors to have a better understanding of the institution.(Internal Audit Practice )
The third step is to perform a SWOT analysis of the various internal controls so as to establish the capability gaps that require to be included in the audit. Initiatives should later be developed to fill the gaps that have already been identified. This helps in the creation of a roadmap for the whole audit process. The next step is to ensure that there is stakeholder alignment. In this, the stakeholders receive information about the process and the needs of the audit. The last step is to establish the key performance indicators for the audit process. These indicators are used to measure the success of the internal audit.
When conducting an internal audit for a given institution or organization, there are several resources that must be availed to the internal audit team. The first resource is human resources. The audit team must have enough personnel for the various missions and goals that have been set to be achieved. Without a strong team comprising of several power enough to undertake the various tasks, the workload may be too heavy and this may make it difficult for the internal audit goals to be accomplished.
The second resource that may be required for the internal audit in unlimited access to various organizational processes and activities. Such unlimited access would allow the audit team to easily test the internal controls and assess whether the firm is functioning as it should and whether the internal controls are sufficient. Another resource would be to be availed with enough time to conduct the whole internal audit without undue pressure or duress. This ensures that all aspects about the organization are evaluated and reported on. The team must also be provided with resources that enable them to conduct the whole internal audit process.
Problems That May Be Faced and How They May Be Handled
One of the biggest challenge is being denied access to some of the details about the organization. When the audit is denied such access, it may consider reporting the matter to the stakeholders to ensure that they are granted such access whenever they want. The second challenge is the inability by the audit team to leverage technology. Inability to leverage technology can at times affect the ease with which audit goals are met. The challenge can be overcome through using innovative audit solutions that incorporate the latest technology in the market. The third challenge that can be faced is developing a workforce strategy. Auditing involves numerous processes and a workforce strategy can be difficult to come up with. The challenge can be solved through brainstorming by the team to come up with strategies that ensure that the set goals are met.