Purpose and Rationale

After obtaining the qualification, the qualified learner will be equipped with the essential knowledge and specific skills needed to be competent in performing internal audit functions. This includes both manual and computerized audit processes.

Outcomes

Plan an audit.
Draw up an audit program in accordance with the best audit practice.
Perform manual and computerised compliance and substantive tests on various fields within the organisation.
Identify risks, weaknesses and improvements in both manual and computer systems.
Apply statistical sampling in selecting data for audit tests.
Use audit software applications in performing an audit.
Advise management on systems, risks, etc.
Write an audit report on the work performed.

Assessment Criteria

Audit Plan

Introduction

This audit plan outlines the approach, scope, objectives, and procedures for conducting an audit of the company's financial and operational systems. The audit will focus on both manual and computer systems to identify risks, weaknesses, and opportunities for improvement.

Objectives

Evaluate the effectiveness and efficiency of financial and operational processes.
Assess compliance with relevant laws, regulations, and internal policies.
Identify risks and weaknesses in the manual and computer systems.
Provide recommendations for improvement to management.

Scope

The audit will cover the following areas:

Financial transactions processing
Inventory management
Payroll processing
IT systems security
Compliance with laws and regulations

Audit Program

Risk Assessment: Identify and assess risks in the financial and operational processes.
Testing Controls: Evaluate the design and operating effectiveness of internal controls.
Substantive Testing: Perform substantive tests on financial data to verify accuracy and completeness.
Statistical Sampling: Use statistical sampling to select a representative sample of transactions for testing.
Audit Software Applications: Utilize audit software to analyze data and identify anomalies.
Documentation: Document all audit evidence, findings, and recommendations.
Reporting: Prepare an audit report following professional standards and guidelines.

Audit Evidence

Audit evidence will be gathered through:

Review of documents and records
Observation of processes
Interviews with key personnel
Testing of transactions and controls

Management Advice

Management will be advised on:

Identified risks and weaknesses
Opportunities for process improvement
Compliance with laws and regulations
IT systems security enhancements

Audit Report

The audit report will include:

Executive summary
Scope and objectives of the audit
Description of audit procedures and tests performed
Findings and recommendations
Management's response
Conclusion and opinion

Conclusion

This audit plan aims to provide a comprehensive evaluation of the company's financial and operational systems. By identifying risks, weaknesses, and opportunities for improvement, management can enhance efficiency, compliance, and security in both manual and computer systems.

Bachelor of Commerce in Internal Auditing