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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
Thread Title: Audit Frequency
Created On Thursday April 26, 2012 12:04 PM
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  Audit Frequency
  Audit Frequency


musashi44


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Joined: Jul 2005

Thursday April 26, 2012 12:04 PM

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Hello All,

Can you provide me with guidance on how your audit groups handle frequency of key audits. For instance, if you are a manufacturing company how often would you plan a inventory or purchasing audit for each location? Does it matter if it is a significant location or not?

Thanks,

Roger

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Yuri


Posts: 155
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Tuesday May 01, 2012 4:30 PM

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As usual in a risk based planning we estimate risks and controls, look at previous audit results and changes since then. We try to spot key audit areas annualy, locations may vary. At the same time if former audits showed effective controls, the audit program may be shorter. We participate in some inventory counts to see if they are done properly.

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AUauditor


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Wednesday June 27, 2012 1:53 PM

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Musashi,

I think the proper answer is - it depends. You should have a risk-based methodology to determine your audit plan - elements of that plan should include the last time the audit was performed, significance of services, prior audit results, etc., etc.

Now, to get more specific, I audit accounts payable/purchasing every two years because the risk has warranted such. Depending on the plants, I will audit them anywhere from every three to four years, but it can be earlier if something comes to my attention. Our plant audits are 90 percent related to inventory controls and activities.

AUauditor

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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
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