planning process in audit ppt
- 1. Prepared by Miss Unnati .M. Patel F.Y.M Pharm(PQA) Guided by Mr A. R. Kuhre Sir M Pharm(P’ceutics) Sanjivani College of Pharmaceutical Education and Research2/1/2019 1
- 2. CONTENT 1. Introduction 2. Purpose 3. Importance 4. Consideration of planning 5. Preparation of audit plan 6. Steps in Planning 7. References 2/1/2019 2Planning Process of Audit
- 3. INTRODUCTION Audit planning is an important and essential process of systematic verification and organised examination. Planning is a process of doing a job in a systematic and methodical manner. It is being defines: (a) What to do? (b) How to do? (c) When to do? (d) Who will do? Planning is an organised approach to complete a task in minimum time at minimum cost and with maximum efficiency 2/1/2019 3Planning Process of Audit
- 4. PURPOSE 1. To work with each other and with the people who will carry out the plans 2. To clarify objectives 3. To set goals for each division 4. To establish policies and standard methods to guide those who do the work 5. To develop programmes, strategies and schedules to keep the work moving towards the objectives 6. To decide who should participate in formulating policies 7. To determine how much freedom of action should be given to subordinates. 2/1/2019 4Planning Process of Audit
- 5. IMPORTANCE 1. Establishes the intended means of achieving the objectives of the audit 2. Assists in the direction and control of the work 3. Ensures that attention is devoted to critical aspects of the audit 4. Ensures that the work is completed 2/1/2019 5Planning Process of Audit
- 6. Considerations Before the Audit • Clearly defined objectives and scope for the audit? • Team identification and assignments? • Specific audit plan for the audit including timing? • Flowcharts or maps of the processes, areas and activities about to be examined? • Review and preliminary analysis of the formal (documented) requirements? • Communication and agreement with the parties about to be audited? • Work papers prepared to guide the auditors in conducting the audit? 2/1/2019 6Planning Process of Audit
- 7. Preparing the Audit Plan • Determine what work papers we will need to conduct audit . • Prepare work papers develop the questions to consider asking • • Annotate (add a notes) procedures or work instructions • Is a flowchart of the process to be audited available? • The work papers act as guide to conduct the audit 2/1/2019 7Planning Process of Audit
- 8. 2/1/2019 8 Determine Audit Subject Perform pre audit planning Determine steps for data gathering Set Audit Scope Define Audit Objective Steps in Planning Process Planning Process of Audit
- 9. 1. Determine Audit Subject Identifying area to be audited , it include location, function, system . 2. Define Audit Objective Identifying the purpose of audit i.e. to determine whether the program changes occur in well defined and controlled env. 3. Set audit scope Identifying the specific system, function and unit of organization. It include detailed information regarding subject chosen for audit. 2/1/2019 9Planning Process of Audit
- 10. 4. Perform pre audit planning Conducting a risk management,which is critical in setting final scope of risk based audit. For other types of audits, conducting a risk assesment is a good practice because the results help audit team to justify the scope and further preplanning focus. Identifying regulatory compliance requirements. Once subject, objective and scope are defined, the audit team can identify the resources that will be needed to perform the audit work. 2/1/2019 10Planning Process of Audit
- 11. 5. Determine steps for data gathering At this stage of audit process, audit team should have enough information to identify and select audit approaches/ strategy and start developing the audit program. Identify and obtain department policies,standards and guidelines for review. Identifying methods to perform the evaluation. Develop audit tools and methodology to test and verify controls Identifying criteria for evaluating test. Define a methodology to evaluate that test and its result ‘s accuracy. 2/1/2019 11Planning Process of Audit
- 12. Identify project to be audited Select the audit team Conduct preaudit meeting to review project information Conduct audit analysis & prepare report Present audit finding to project owner Prepare formal response Incorpoarate findings into projects Audit team Design team/ projcet owner 2/1/2019 12Planning Process of Audit
- 13. References 1. Kamal Gupta and Ashok Arora. Fu,tdamentals of Auditing: Tpta McGraw-Hill Publishing Co. (Chapters 1 to 5). 2. Excerpted from ISACA White Paper, Information Systems Auditing: Tools and Techniques— Creating Audit Programs Audit Plan Activites : Step by Step (www.isaca.org/creating-audit-programs). 2/1/2019 13Planning Process of Audit
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