5 Key Areas to Test When Building an Effective Audit Plan
Auditors today work in an exceptionally complex and always-evolving industry. In an environment where there is pressure to add more value with fewer people and less time, auditors are being challenged to discover more risks, audit more areas more frequently and uncover any fraud in their organization.
Yesterday’s ineffective audit planning method
Many audits today are conducted at planned intervals rather than based on thoughtful consideration of evidence that points to patterns or risky areas. Instead, auditors select a given area and ask the organization if it is risky. Depending on the response, an audit will either be performed annually or every two to three years if it’s deemed to be less risky. Unfortunately, this method of planning can allow areas of risk to be overlooked and fraud or other issues to go undetected.
Today’s effective audit planning method
To help improve the effectiveness of their audits and to clearly demonstrate their value to the organization by pinpointing findings that will save the company money, auditors must first plan their audits better.