Most organizations even though
they undertake routine or regular audit exercises, are still are unable to fully
exploit the benefits of an audit service simply because they do not posses an audit
manual.
An audit manual is a carefully
crafted document that will help the organization evaluate, assess and understand
what it’s Audit needs are.
Audit needs are activities, events, procedures, processes that an would entity desires to have an independent report on. This report apart from looking at the statutory compliancy aspects, should also point out to leaders of the organization the direction and trends of the organization in terms of management efficiency and effectiveness as well as strategy.
Audit needs are activities, events, procedures, processes that an would entity desires to have an independent report on. This report apart from looking at the statutory compliancy aspects, should also point out to leaders of the organization the direction and trends of the organization in terms of management efficiency and effectiveness as well as strategy.
Pre- Audit exercise,Terms of Reference and Scope of Audit:
An audit manual will help guide the organization on how to prepare for this very important exercise like stock taking, verification of account balances and registers, develope Terms of Reference(ToRs),scope of Audit,duration etc..
This prior preparation provides good of information that would help the auditor understand the entity better and appreciate its audit needs which is very critical for effective audit planning and execution.
An audit manual will help guide the organization on how to prepare for this very important exercise like stock taking, verification of account balances and registers, develope Terms of Reference(ToRs),scope of Audit,duration etc..
This prior preparation provides good of information that would help the auditor understand the entity better and appreciate its audit needs which is very critical for effective audit planning and execution.
So many organizations shun audit
thinking it’s a waste of money and time and only do it because the law requires
it or to show that they are a legitimate entity.
Audit expectations and Auditor's liability:
Audit expectations and Auditor's liability:
The manual will guide the engagement process and clearly state what the entity's expectations from the Audit and also lay down a mechanism that would hold the Auditor liable should anything damaging or un professionalism should it come out of the report.
Management's Responsibility:
Management's Responsibility:
An audit manual will hold management
more accountable, to carry out its duties cautiously fully aware that they will
have to keep good evidence of what has transpired for the auditor to examine.
Its important to note that not every document is audit evidence, but the audit
manual will help guide on that.
Developing an Audit manual is not
quite that simple and JW & PARTNERS helps entities in this area.
It is also sufficient to say that
an audit manual will continuously be adjusted through reviews or change in management’s
strategic objectives.
This will enable the entity put
out well expressed Tender bids for Audit service that will help the
organization identifying the most suited Auditor. It will also help an organization
look beyond the auditors experience in auditing similar entities but assess the
auditor’s understanding of the entity’s audit needs from the perspective of industry
and sector, and management processes from his/her response to the Expression of Interest
(EoI) for audit service.
To develop a good Audit manual,
requires someone with not only a good level of audit experience but rich
knowledge of organizational strategy and structural development.
Like all our other services, Designing
audit manual is a service that JW & PARTNERS does very well, and we would
be happy to service your organization in this respect.
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ReplyDeleteThe Online Bookkeeper is a complete manual that explains in depth the procedures involved in conducting a corporate audit. This book explains in simple words and terms, how to audit a company, what to look for and what to do, as well as how to deal with certain difficult situations such as the audit itself, dealing with auditors and the audit committee etc. The book also talks about the different strategies that are adopted by the organizations to deal with these problems. The manual also contains chapters on Auditing Management and Auditing Process, Auditing Technology, Auditing Procedures, Auditing Systems, Auditing Process Improvement, Auditing Principles, Auditing Procedures and Auditing Duties. The other sections of the Manual include Auditing Plans, Auditing Process Improvement, Auditing Methods, Auditing Code of Ethics, Auditing Codes, Auditing Standards, Auditing Reporting Requirements, Auditing Systems and Procedures, Business Case Analysis and Auditing Data.
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