Matakuliah
Tahun
Versi
:A0274/Pengelolaan Fungsi Audit
Sistem Informasi
: 2005
: 1/1
Pertemuan 15
Audit Performance
1
Learning Outcomes
Pada akhir pertemuan ini, diharapkan mahasiswa
akan mampu :
• Mahasiswa dapat menunjukkan audit
performance.
2
Outline Materi
• Corporate Audit Performance Process Matrix
– Assignment Log and Checklist
• Audit Performance Process Log
– Description of Notice to Auditee
– Preliminary Survey
• Purpose
– Progression of and Procedures for Preliminary Survey
– Planning Memo
•
•
•
•
Purpose
Objective
Procedure
Format
– Audit Status Report
3
– Developing Audit Recommendations
• Recommendation Worksheet
• Form Format
4
Corporate Audit Performance Process
Matrix
• The audit process begins with the notification of
the auditee and concludes with the performance
evaluation of each staff member on the project.
• The budget will help guide the staff to put their
time into the proper areas. It will also assist
audit management is explaining why audit have
taken more or less time than originally panned.
Budgets also help refine the long-term planning
process and provide improved credibility for the
audit function. One must always keep in mind
that it is very difficult to measure audit
productivity.
5
Assignment Log and Checklist
• At the commencement of an audit
assignment, a number is given to the audit
project.
6
Audit Performance Process Log
• In order to maintain control over all audit
assignments, a log is kept by the
department administrator.
7
Description of Notice to Auditee
• Some audit departments do not notify
auditees because they can improve or
address areas that may come under audit
procedures.
8
Preliminary Survey
• Purpose
• Progression of and Procedures for
Preliminary Survey
9
Purpose
• The purpose of a preliminary survey is to:
– Gain a basic understanding of the entity to be
audited, especially related to risk assessment
– Begin the planning process
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• Auditors should obtain background
information about the activities to be
audited.
11
Progression of and Procedures for
Preliminary Survey
• Review the scope of the pending audit.
• Arrange a preliminary meeting with
management.
• Complete preliminary survey field
procedures.
• Prepare a schedule of all significant books
of original entry.
• Prepare a schedule of primary
management reports.
12
Planning Memo
•
•
•
•
Purpose
Objective
Procedure
Format
13
Purpose
• The planning memo outlines the manner in
which the department audit plan is to be
implemented for a specific audit, special
assignment or other activity.
• Before each assignment, a planning memo is
required to establish coordination between
internal audit staff and management. This
document will ensure that the objectives and
scheduling of the audit are being communicated
and understood by all involved.
14
Objective
• The planning memo serves several
purposes; namely, to document audit
objectives, auditee background
information and financial highlights; to
describe significant audit procedures,
budgeted hours, engagement timing and
personnel assigned.
15
Procedure
• Planning memos are to be typed on
interoffice stationery and addressed to the
Director of Auditing. A copy is also
included in the workpapers.
• The planning memo should be completed
far enough in advance of an assignment
for manager review and approval.
16
Format
• The format designed to be used
consistently for a planning memo.
17
• A brief explanation for each section
follows:
– Introduction
– Objective
– Scope
– Background
– Financial Highlights
– Significant Audit Areas/Audit Approach
– Staff and Timing
– Budget
18
Audit Status Report
• The purpose of a status report is to provide audit
management with a progress report of the
assignment. On assignments scheduled for
more than four weeks, a status report is
required. A typical report would outline
significant findings, audit scope changes and
rationale, work completed and an estimate of
time to complete the assignment. This
information documents and enables the
manager to make a decision on additional scope
changes, staffing (increase or decrease) and
staff schedule changes. The in-charge auditor
has the responsibility for the status report.
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• A formal status report is not usually required for
a short period assignment. However, an
informal report can be phoned into the manager,
describing significant findings, the status of the
work completed, the estimate of completion and
other situations affecting the audit.
• Communication keeps the manager aware of
current situations and assists in the decision
making on that assignment as well as
scheduling other audits. It also provides
documentation, as required in our corporate
audit performance process, in our project control
file.
20
Developing Audit Recommendations
• An audit recommendation is a condition that, in
the auditor’s judgment, requires changes or
action and is of sufficient magnitude to warrant
the attention of management.
• Discovery of an exception is revealed during
audit testing, development of recommendation
may require a series of expanded audit tests,
research and communication.
• The problem or situation as it exists must be fully
defined and explained.
21
• The ability to express the results of an
audit in well-written audit
recommendations is a measure of
assurance that management will take
appropriate action and one of the principal
bases on which audit performance will be
judged.
• Each auditor must assume individual
responsibility for improving proficiency in
this respect.
22
• Some basic criteria for effective writing hat
should be observed in the preparation of
audit recommendations are:
– Accuracy.
– Objectivity.
– Readability.
– Clarity.
23
• General Characteristics:
– Evaluate the significance of what you are reporting.
– Write in simple, non-technical, clear language.
– If you refer to a form number, state its name or
subject somewhere in the report.
– If you use obbreviations, spell out heir meaning when
they first appear.
– Reasonable logic is important.
– Be concise. Avoid wordiness and inclusion of
extraneous matter.
– Do not be evasive.
– Write constructively.
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– Provide support to all information in
recommendations.
– Present relevant comments and reviews of
the issues being discussed.
– Clearly identify opinions, especially if they
concern significant matters.
– Do not generalize by simply saying that a
practice “weakens controls.”
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• The following steps should be followed in order
to provide for systematic development of a
recommendation after an exception is revealed:
– The problem or situation as it exists must be fully
defined and explained.
– The criteria or standards for an activity should be reevaluated as to applicability and adequacy at this
point in the development of the recommendation.
– It is necessary to look at the effect and significance of
the problem.
– If the effect is minimal, this condition is the auditor’s
notice to discuss the problem with the operating level
of management.
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– If, in the auditor’s opinion, the effect is
significant, the auditor should proceed with
the development of the recommendation.
– The auditor must seek to find out, through
expanded testing and gathering of data, what
caused the problem or situation.
27
• Developing Recommendation Data:
– Statement of Condition.
– Criteria
– Effect.
– Cause.
– Statement of Action.
28
Recommendation Worksheet
• A form should be created for the purpose
of writing up the recommendations as they
are initially discovered. A copy should
then be given to the auditee.
29
• There are many good reasons for following this
procedure:
– If recommendations are neat and well written at the
time of discovery and copies given to the auditee,
valuable research and input can be obtained before
the closing conference.
– The procedure lends itself to better written,more
factual audit recommendations because the material
is fresh on the auditor’s mind – preferable to writing
the recommendation later in time.
– Why take many recommendations to the closing
conference when a “climate for change” can be
initiated during the course of the audit?
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– If the recommendation has been resolved by
the auditee during the audit, it is much more
agreeable to the auditee. If only mention is
made summarizing items corrected during the
audit.
– The interim communication also gives the
auditor a written workpaper document to use
in discussing recommendations at the closing
conference.
– Once written recommendations are resolved
to the degree possible, corrections should be
made and submitted for typing the final report.
31
Form Format
• The form is designed to be as functional
as possible but it is limited in space to
encourage factual, precise write-up
recommendations.
32
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The End
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