When performing the actions listed above, auditors need to consider the key objectives from each audit procedure. For instance, a typical internal audit department is structured so that areas of the department focus on different cycles or business activities. Long extended effective auditing business writing pdf tend to decrease support for continuous auditing.
Objectives can be classified as one of four types: In addition, the frequency of each parameter might need to be changed after its initial setup based on changes stemming from the activity being audited. Furthermore, other tools used by the manager of the continuous audit function include an audit control panel in which frequency and parameter variations can be activated.
Furthermore, the stratification of audited data into sub-groups allows organizations to better monitor the activity and reconfigure any parameters e. For instance, the person receiving the alarm might wait to follow up on the issue if the alarm is purely educational i.
Many internal audit departments also integrate and coordinate with other compliance plans and activities, if applicable. Below is a description of each.
Steps below are applicable to all of the priority areas and processes being monitoring as part of the continuous audit program. Although not a lot of guidance exists today about the best ways to implement a continuous audit process, as with any major change, the evolution toward continuous effective auditing business writing pdf will take time and substantial attention from senior management.
Auditors need to consider the natural rhythm of the process being audited, including the timing of computer and business processes as well as the timing and availability of auditors trained or with experience in continuous auditing.
Communicating Results A final item to be considered is how to communicate with auditees. However, hiring, training, and retaining auditors who can implement and monitor continuous audit activities might be challenging due to the scarcity of internal auditors with knowledge in the area.
Sometimes, however, IT audit activities are incorporated as part of existing IT operations. In organizations such as these, the development of continuous auditing is usually delayed because the activity may not get the necessary development priority.
Additional Considerations Besides the six steps described in the previous section, two additional issues that emerge when implementing continuous auditing are the infrastructure needed for the process to work and its impact on the workplace. Questions such as who will receive the alarm e.
Evaluate the costs and benefits of implementing a continuous audit process for a particular risk area.
However, the more complex the rule and its conditional components, the more parameters that must be examined, monitored, and sometimes reconfigured. Choose early applications to audit where rapid demonstration of results might be of great value to the organization.
Identify the critical business processes that need to be audited by breaking down and rating risk areas. Following Up Another type of parameter relates to the treatment of alarms and detected errors.
In addition, the development and implementation of communication guidelines and follow-up procedures must consider the risk of collusion. A particular audit priority area may satisfy any one of these four objectives.
For instance, if multiple system alarms are issued and distributed to several auditees, it is crucial that steps take place prior to the communication exchange and that detailed guidelines for individual factor considerations exist.
Because follow up costs would go up as the number of false positives increases and the presence of false negatives may lead to high operational costs for the organization, internal auditors should regularly reevaluate if error detection and follow-up activities need to be continued, reconfigured, temporarily halted, or used on an ad hoc basis.
Impact on Personnel In addition, the audit manager in charge of the continuous audit process should have a more technical understanding of IT as well as extensive experience on the activities being audited. For instance, how quickly a management response is provided once an activity is flagged may depend on the speed of the clearance process i.
Furthermore, the continuous audit process might create a daily stream of issues that need to be resolved, which might prove stressful given current personnel resources, and might require the continuous audit manager to exert adequate authority in moments of exceptions.
Understand the availability of continuous audit data for those risk areas.
Hence, the nature of other continuous audit objectives, such as deterrence or prevention, may determine their frequency and variation. When defining a CAP, auditors should consider the cost benefits of error detection and audit and management follow-up activities.
In addition, the department may be divided into financial and IT audit functions. Additional follow-up procedures that should be performed as part of the continuous audit activity include reconciling the alarm prior to following up by looking at alternate sources of data and waiting for similar alarms to occur before following up or performing established escalation guidelines.Continuous Monitoring Vs.
Continuous Auditing. Typically, continuous monitoring is a management function to ensure that company policies, procedures, and business processes are operating effectively and addresses management's responsibility to assess the adequacy and effectiveness of internal controls.
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Advisors to Industry auditing the particular type of Mgt. system, sector • Application of business and technical discipline specific methods, techniques, processes and practices sufficient to enable the auditor to examine.
Information Systems Auditing: Information systems audits can provide a multitude of benefits to an enterprise by ensuring the effective, efficient, secure and reliable operation of the information systems so critical to organizational success. The effectiveness of the audit depends, in large part, on the report writing and issuance.
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