The internal audit activity is important to the business, regardless of its size or nature. ‎However, the successful internal audit process, which achieves the desired objective, ‎should be based on sound planning, constructive engagement, and communication ‎between the audited entity and the audit department. The article aims at explaining how ‎the internal audit process works in general.‎

Audit planning shall be based on the coverage of all activities of the Foundation at least ‎once a year. Planning avoids ignoring critical stages of scrutiny and involves identifying ‎important problems. And to respond to the tasks assigned to the staff and prevents the ‎assignment of auditors’ tasks that do not commensurate with their abilities and ‎experience. The responsibility of the internal auditor is to determine the scope of work, ‎the objectives to be achieved by the audit and the main area to be reviewed and ‎evaluated.‎

Although the specialists differ in the determination of the audit stages, there is agreement ‎and consensus that these stages include planning, internal control, and risk assessment, ‎core testing, delivery of results and follow-up.‎

An internal memo

The audit function begins by selecting the activity to be subjected to the internal audit ‎process. The auditor can choose this activity in different ways. This option is not limited to ‎the auditor’s wishes but at the request of others within the establishment. The chief audit ‎executive should determine the appropriate and sufficient resources (financial and ‎human) to achieve audit task objectives. The audited entity shall be notified by means of a ‎letter of engagement from the Internal Audit Manager. This letter sets out the scope and ‎objectives of the audit, the audit team assigned to audit the activity, and other relevant ‎information.‎

First meeting

Prepare a number of basic questions to query specific audit topics or initiate discussions ‎that may lead to unknown or unexpected results.‎

During the opening meeting, the audited entity describes the unit or system to be ‎performed, the resources available (personnel, facilities, equipment, funds), and other ‎relevant information. The internal auditor meets with the senior officer directly ‎responsible for the unit under review and any staff member wishing to include it. It is ‎important for the audited entity to identify issues or areas of particular importance that ‎need to be addressed. A surprise factor may be required when conducting interviews ‎when the task involves cash checks or fraud investigations.‎

Internal Control Review

Examine and evaluate the internal control system in place and then identify weaknesses in ‎this system, to make recommendations with a view to improving the control system. The ‎performance standard specifies that the internal audit activity should assist the entity in ‎achieving effective control by assessing its effectiveness and efficiency and promoting ‎continuous improvement is sufficient. In doing so, the auditor uses a variety of tools and ‎techniques to collect and analyze information about the process. The review of audited ‎internal controls helps identify high-risk areas and design tests to be performed in the ‎fieldwork section.‎

Analytical audit procedures

Are actions aimed at obtaining data and information that will help shape a general direction ‎of the work being scrutinized?‎

Audit Program

Are programs of work to achieve the objectives of the internal audit function, and work ‎programs and procedures should be written to identify, analyze, evaluate, and record ‎information during the task.‎

‎ Fieldwork

Fieldwork focuses on obtaining audit evidence from an appropriate mix of critical control ‎tests and critical procedures.‎

Audit Summary

Upon completion of the field work, the auditor summarizes the audit results, conclusions ‎and recommendations needed for the draft discussion project.‎