Internal Audit Process

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Internal Audit Process

• Auditee selection
• Audit planning
• Preliminary survey
• Internal control review
• Expanded testing
• Develop findings recommendations
• Reporting
• Follow-up
• Post audit evaluation

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Control Self Assessment (CSA)

• Methodology
• Review and Identification
• Key business objectives
• Related risks
• Mitigating controls

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CSA-History

• Introduced by Gulf Canada in 1987
• Gulf used facilitated meetings

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Facilitated Meetings

• Management and staff participate through
  interviews and polling
• Objectives
• Risks
• Processes
• Soft and/or informal controls

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General Methodology

• Shared process
• Assessment of internal controls
• Evaluation of risks
• Development of action plans
• Assess the likelihood of achieving objectives
• SJSU simulation

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General Approaches

• Facilitated meetings--group workshops
• Questionnaires--yes/no answers
• Management analysis--self studies

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Uses

• Self analysis for risk
• Selection of audit areas
• Internal control review
• Special projects
• Soft control analysis
• alternatives to the traditional approach to the
  I/A process

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Benefits

• Increases I/A scope
• Target review of high risk areas
• Increases the effectiveness of corrective action
• Builds team-oriented relationships

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What Is Storyboard Flowcharting?

• New method for documenting a process.
• Clean and simple flowcharting method.
• Allows for clients and auditors to clearly
  understand process under review.
• Simple technique that requires a good graphics
  package and a little imagination.
• Can use Microsoft PowerPoint, Harvard Graphics,
  Corel Draw, etc.
• Does not replace IS flowcharting.

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The Basics of Storyboard

• Meet with client and document process.
• Use your imagination to choose/draw picture.
• Under picture write narrative for each step
  represented.
• Be creative - good control narrative in green
  poor controls in red.
• Completed storyboard must be reviewed with
  client.
• Make any changes necessary.
• Final copy should be in color for most effective
  presentation.
• Different process may require different approach.

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How to Storyboard
A

• Meet with client and document process.

• From client interview
• create storyboard.

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Work Paper Purposes

• Documentation of evidence
• Audit execution and planning tool
• Follow-up reference
• Review facilitator

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Other W/P Factors

• Ownership the company
• Preparation guidelines
• Completeness accuracy
• Clarity understandability
• Legibility neatness
• Relevance
• Attention to detail

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Sample Work Paper
Ref.
Heading
Purpose Conclusions
T/M Legend
Review
Source
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Flowcharting
Begin or End
File
Activity
Decide
Document