The Audit environment is one of an art, not a science

I. Pre-Audit Preparation1. Define the Purpose of the audit.2. Define the Objectives of the audit.3. Define the Scope of the audit.4. Conduct a brief and informal question and answer session with department supervisor to determine ifthere have been any material changes in operations since the last audit. If there has been a materialchange, prepare a new Procedural Narrative for the permanent file.5. If the scope of the audit is unusually large, or if the anticipated man-hours allotted for this audit isprojected to take longer than 10 business days, an Information and Documentation Request form willbe sent to the department manager giving them two weeks to gather all documentation necessary toperform the audit. (See standard Information and Documentation Request form in appendix).II. Establishing the Scope of the Audit1. Determine if this is an existent audit workprogram. If yes, go to #2. If no, go to #3.2. Review workprogram and determine if there have been any material changes that would warrantrevising the workprogram:A. Have there been any changes in internal procedures?B. Has personnel been reduced in the area which could compromise dual controls?C. Have there been any regulatory updates that warrant review?D. Have any processes become automated?3. Create a workprogram for function to be audited.A. Review any published regulation or law and address all requirements.B. Incorporate internal processing proceduresi. System Input/Outputii. ...