Audit Process

Step 1: Audit Planning

  • Send Engagement Letter to Client
  • Hold entrance meeting with Client and discuss: audit timing, Client concerns, Client contact preferences, policies and procedures, audit objectives and scope
  • Perform preliminary review
  • Identify controls and perform risk analysis
  • Develop audit tests

Step 2: Fieldwork

  • Perform audit tests
  • Create work papers and document findings
  • Develop written or oral preliminary findings and recommendations
  • Discuss preliminary findings and recommendations with Client according to the schedule established at the entrance meeting

Step 3: Draft Report

  • Create draft report of findings and recommendations as previously discussed
  • Circulate Draft Report according to policy

Step 4: Closing / Exit Meeting

  • Review and discuss the Draft Audit Report with the Client
  • Revise Draft Audit Report as agreed upon with the Client

Step 5: Final Draft Audit Report & Client Responses

  • Distribute the Final Draft Audit Report to the Client and request written responses
  • Provide two weeks for Client’s responses

Step 6: Final Audit Report

  • Incorporate Client’s responses into the Final Draft Report and distribute the Final Audit Report according to policy