What Should the Auditor Audit? Successful operational auditing begins with the auditor understanding the business: What are the core products, business units, and employee and customer bases? How can the auditor begin to survey the business to begin to put an audit plan together? What resources are available or should be accessed by the auditor?
There are various types of audits depending on the specific type of audit being performed. However, even though there are different types of audits, the audit procedure should remain the same. The audit should look for compliance with the policies and procedures. The Auditor should investigate and evaluate the level of compliance and the effectiveness of the company or organizations. Depending on the type of audit being performed, the audit will evaluate and identify financial issues within the company to determine if it finances are allocated the way they are supposed to be. The auditor also ...view middle of the document...
Planning for the audit should consist of, but not limited to, the following guidelines:
-Discussing the Sarbanes-Oxley fulfilment and compliance.
-Accessing the organization facility to get a better vision of the process and procedures.
-Analyze the internal information and procedures that are currently in place.
-Explain the process to the individuals in the organization based on what has been done and what need to be done.
-Investigate the internal documents to get a better understanding of the company’s policies, employee practices, description of various job functions and the organizational chart of the company.
One of the most important things that all auditors should do is evaluate the relevance and reliability of a company or organization. In my opinion these two are the heart of providing good reports. Relevance is important because it produces the evidence that is directly related to the information that an auditor is trying to substantiate. Evaluating the reliability gives a since of dependability, whereas the auditor can depend on the information to provide them in the right direction of the audit being performed. Often times, the information is more reliable of can be depended upon if it is well-written as oppose to oral communication. Auditors should audit the aspect of the business or organization to determine the level of efficiency and the level of effectiveness and make a formal report of what needs to be evaluated or corrected. The auditor will make a recommendation to the organization of the negative findings that will impact the organization. Every auditor should audit the various functions of the organization to ensure that the organizations are operating in compliance with the laws.
Resources available for auditors:
-SEC: Security and exchange commission. www.sec.gov
-The Sarbanes-Oxley Act. http://www.soxlaw.com/
-IIA: Institute of Internal Auditors. https://na.theiia.org/
CareersinAudit (CIA). 2014. Internal vs. External Auditors, What’s the difference? http://www.careersinaudit.com/article/internal-vs-external-auditors-what-s-the-difference-/
PCAOB (Public Company Accounting Oversight Board). 2014. Auditing Standard No. 13. http://pcaobus.org/Standards/Auditing/Pages/Auditing_Standard_13.aspx