How to Use an Audit Planner to Observe and Track a Business Audit
Observing an audit process is something important that needs to be done in audit planning. Whether the audit planning that was planned by the auditor will depend on the observing process. If the observing process is successful, then the audit will be effective as well. To do an audit planning and observing process, you will need to create and use an audit planner. Before understanding more about the observing process in an audit for a company, you will need to plan properly all the processes of the audit that will happen. Starting from the planning to the report of the audit, they need to be included during the brainstorming of the audit planner.
Different businesses will have different steps and processes of an audit. Since there isan internal and external audit, they need to also be planned carefully. For an internal audit, you need to make sure that all departments are included. As for an external audit, you must make sure that an external audit plan is created so that you have a checklist of all the vendors, suppliers, clients, and customers that will be included in the auditing process too. The process of an audit for a manufacturing company will be different from a construction business for example as the process of production (manufacturing) and distributing goods to the clients will be observed as well.
In the annual audit plan, you will have to include the opportunity cost where will include the time needed to run the process of the audit, the labor cost of the audit which is the fee that the company needs to pay the auditor and other staff, the overhead cost that is the additional fee that occurs during the process of the audit, and the operational fee that is counted as expenses such as telephone bills, power bills, rent bills, etc. All those costs mentioned need to be covered by the company. The main reason for the plan is to find out if the company gains profit or experiencesa loss of profit during the whole year.
Samples of Audit Planner
Ways to Ensure an Audit Work Plan Works Properly
To make sure that the auditing process is done properly, you will also need an audit checklist. On one side, it will be able to present reports to the management team and board members on how the business is going. On another side, the report of the audit will also be able to be used as a report to the government on how the business is running. The essence of planning an audit is to allocate time, resources, and overhead cost that occurs during the process of an audit to be able to produce an accountable and independent report that will be useful for various purposes.
Since the main reason for the audit is to make sure that the time, energy, and cost that needs to be paid by the company can be as little as possible yet keeping the quality of the result of the audit to be good, an audit work plan needs to be created. Whether the end purpose of the audit is reached or not, will depend on the audit planning that is created by the auditor (internal or external). At the bottom of this page, you will be able to download an audit planner template for free.
Audit Planner Template – Word