How The Audit Process?

In the financial world may already be familiar with the name of the audit. because of the company within a certain period will be audited financial statements of the company. Audit or investigation in a broad sense meaningful evaluation of an organization, system, process, or product. Audits conducted by the competent, objective, and impartial, called auditors. The goal is to verify that the subject of the audit has been completed or run in accordance with standards, regulations, and practices that have been approved and accepted.

Audit Process: 

Audit in the context of information technology is to check whether the computer system running properly. Seven-step audit process:

1. Implement a strategy of risk management-based audit and control practices that can be agreed by all parties.
2. Set the steps detailed audit.
3. Use facts / material evidence sufficient, reliable, relevant, and useful.
4. Make the report and its conclusions based on facts collected.
5. Examine whether the audit objectives achieved.
6. Present reports to interested parties.
7. Ensure that the organization implements risk management and control practices.

Before running the audit process, of course, the audit process should be planned in advance. Audit planning (planning the audit) should clearly explain the purpose of the audit, the authority of auditors, the approval of higher management, and audit methods. Audit methodology:

• Audit subject. Determine what will be audited.

• Audit objective. Determining the purpose of the audit.

• Audit Scope. Determining the system, function, and part of an organization that is specific / particular will be audited.

• Preaudit Planning. Identify resources and human resources that are needed, determine what documents are needed to support the audit, determine the location of the audit.

• Audit procedures and steps for data gathering. Determine how to conduct an audit to examine and test control, determining who would be interviewed.

• Evaluation results of the testing and inspection. Specific to each organization.

• Communication procedures with management. Specific to each organization.

• Audit Report Preparation. Determine how to inspect the results of the audit, namely the evaluation of the validity of the documents, procedures, and policies of the organization being audited.

 

The structure and content of audit reports are not standard, but generally consist of:

1. Introduction. The purpose, scope, duration of the audit, the audit procedures.
2. General conclusions of the auditors.
3. Audit results. What was found in the audit, whether the procedures and controls are not feasible or
   Recommendations. The response from management (if necessary).
4. Exit interview. Last Interview between auditors with management to discuss the findings and recommendations follow. At once to convince the management team that the audit results valid.

So, the audit is very important to minimize the risk of benefit fraud and error within an organization or company to run, as appropriate, procedures or standards set.