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Auditing: How to survey the business to write an audit plan?

Successfully operational auditing starts with the auditor having an understanding of the following:

1. what consists of its core products,
2. business units, and
3. employee and customer base.

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?

Solution Preview

Operational auditing is internal auditing. It has become more and more important as organizations have grown, diversified their products lines, and established global presence. Further, the sophistication of IT and software capabilities require higher levels of expertise on the part of the internal auditors. Then, large companies must have effective internal audit function to fulfill Sarbanes-Oxley requirements.

The response to your question could vary depending upon whether the auditor is new to the company, or the internal audit function is to new to the company. Assuming the function is new as well as the ...

Solution Summary

The solution first gives a definition of operational auditing including compliance with Sarbanes-Oxley. Following is a list of 14 procedures and suggestions for an internal audit department when designing an audit plan. Three or four of the suggestions involve the quality of the audit staff and how their expertise might be upgraded.