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Chapter 9

Auditing is the assessment process to ensure compliance with financial, operational, and strategic goals in organizations. The audit process consists of five phases: Selection, Planning, Execution, Reporting, and Follow-Up, each with specific objectives and activities. Internal Audit conducts risk assessments, gathers information, executes fieldwork, communicates findings, and follows up on audit results within a year.

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23 views2 pages

Chapter 9

Auditing is the assessment process to ensure compliance with financial, operational, and strategic goals in organizations. The audit process consists of five phases: Selection, Planning, Execution, Reporting, and Follow-Up, each with specific objectives and activities. Internal Audit conducts risk assessments, gathers information, executes fieldwork, communicates findings, and follows up on audit results within a year.

Uploaded by

Randelle James Fiesta
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We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 9 – ACTIVITY

1. Define auditing
Auditing is the process of assessment and ascertaining of financial, operational,
and strategic goals and processes in organizations to determine whether they are in
compliance with the stated principles in addition to them being in conformity with
organizational and more importantly, regulatory requirements. Indeed, among the
objectives of auditing as mentioned above, conformance with regulatory norms and
rules and regulations is indeed one of the drivers behind auditing and historically and
traditionally, has been the main reason why organizations get their financial statements,
operational process, and strategic imperatives audited.

2. Give the five (5) phases of audit process


Selection Phase
Planning Phase
Execution Phase
Reporting Phase
Follow-Up

3. Define the meaning of each audit process phases


Selection Phase
Internal Audit conducts a university-wide risk assessment near the end of each
calendar year. We develop the audit plan for the subsequent year based on the results
of this assessment and the department’s available resources. The Chancellor and the
Fiscal Affairs and Audit Committee of the Kansas Board of Regents review the audit
plan before it is executed.
Planning Phase
During the planning phase of each project, the Internal Audit staff gather relevant
background information and initiate contact with the client. Auditors meet with university
leadership and clients to identify risks and determine the objectives and scope of the
audit as well as the timing of fieldwork and the report distribution.
Execution Phase
Once the audit is planned, fieldwork is executed by the Internal Audit staff.
Clients are kept informed of the audit process through regular status meetings. We
discuss audit observations, potential findings, and recommendations with the client as
they are identified.
Reporting Phase
A summary of the audit findings, conclusions, and specific recommendations are
officially communicated to the client through a draft report. Clients have the opportunity
to respond to the report and submit an action plan and time frame. These responses
become part of the final report which is distributed to the appropriate level of
administration.
Follow-Up
Internal Audit follows up on all audit findings within one year of when the report
was issued.

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