Audit Program

Objectives:
Scope:

AUDIT STEPS TO BE COMPLETED

COMPLETED
BY

A. Planning and Administration Section

1

Review the Permanent Files, prior working papers, including

policies/procedures, organizational charts, agreements, and any other
informations.

Conduct pre-audit interview with auditee and document discussions held.

Conduct audit planning meeting with Audit Manager and/or Director and
document discussion held. The following should be discussed:

Timing of audit kick-off meeting / planned participants in the meeting

Timing of fieldwork
Risk areas / internal controls
Audit objectives
Assignment of audit objectives (if more than one auditor is working on
audit)
Consideration of the impact of authoritative accounting literature or
legislation
Testing to be performed (if this can be determined at this time)
Budgeted hours
Engagement memo

Prepare engagement memo and obtain approval from the college governor.

Schedule the audit kick-off meeting with applicable management. Include

a meeting agenda in the meeting request (or send soon thereafter).
Discussions held should be documented and include the following:

Timing of the audit

Audit objectives
Key contacts for the audit
Send an information request list to the auditee. Items to consider:

Relevant agreements/contracts
Organizational charts
Relevant reports utilized by the auditee

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AUDIT STEPS TO BE COMPLETED

COMPLETED
BY

Prepare (or update) the process narrative to document the process under
audit based on discussions held with individual familiar with the process.

Inquire of the auditee as to whether any relevant process flowcharts exist.

If not, consider developing one for the permanent file.

If the audit involves an outside company (particularly a financial institution

or insurance company), determine if a SAS 70 Report (Report on Internal
Controls Design and Effectiveness) has been issued on the company. If so,
obtain a copy and determine if this will impact the audit.

B. Fieldwork
1. First Objective
To determine whether proper books or records of account and other
financial records have been maintained and properly recorded
Procedures:
a) Review of prior years working papers
b) Discussion with people within and outside the entity
General Steps to be performed:
a) Test of ending account balances
b) Examine whether collections and disbursements were properly recorded
2. Second Objective
To determine whether the College of Education Councils Financial
Transaction and Financial Position are in agreement with the books of
accounts
Procedures:
a) Inquire to responsible officers whether they use chart of accounts
General Steps to be performed:
a) Acquire the books of accounts used by the auditee
b) Test whether they use proper accounts specified on their list of
accounts
3. Third objective
Evaluate the effectiveness of internal control
Procedures:
a) Distribute questionnaire to respective officers
General Steps to be performed:
a) Assess the effectivity of internal control

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AUDIT STEPS TO BE COMPLETED

COMPLETED
BY

C. Communicate Results
1

As testing is completed, any issues found should be communicated to the

auditee to confirm the results.

After verification of the issues, a summary of findings form should be

completed and sent to the auditee so that a response can be developed.

10 Submit workpapers for governors review as audit steps are completed.

This will help facilitate timely review.
4. Clear all appropriate review notes.
D. Close Out and Submit Report
1

Prepare Draft Report and submit for review.

11 Complete the Audit Report Checklist and include in the work papers.
12 Conduct an exit meeting with auditee to discuss issues noted during the
audit and obtain agreement on the issues.
13 Communicate to the auditee their responsibilities addressing the issue
found.
14 Discuss the recommendations, action plans and timelines for addressing
the issue.
15 Based on the discussion, make any necessary changes to the report and
submit for appropriate review.
16 Issue Final Report after review is completed.
End Of Audit Steps

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