Q:

What are the main steps of a process audit?

A:

Quick Answer

The audit process steps include accessing the documents of the organization under audit, planning the audit process, meeting with organizational managers and administrators, carrying out fieldwork and reporting the audit findings, according to the Houston Chronicle. Discussing the report and other issues in a closing meeting is also part of the audit process.

Continue Reading

Full Answer

Accessing the organizational documents involves sending a request to the organization's authorities to serve the auditor with all the documents relevant to the audit process as indicated in an audit preliminary checklist, notes the Houston Chronicle. A previous audit report copy, receipts, charts, original bank statements and copies of minutes of the organization's board of directors are some of the documents that the auditor may seek to have. To create the audit plan, the auditor first scrutinizes the documents and drafts the plan based on the content of the documents.

The open meeting of the auditor and the organizational managers and administrators involves notifying said managers and administrators of the audit scope, states the Houston Chronicle. It also involves agreeing on the audit duration and timetable. During the fieldwork, the auditor discusses with the organizational staff about the organizational problems and possible policy and procedural changes. The audit findings report contains discrepancies such as calculation errors; authorized, but unpaid wages; and posting mistakes. The report also contains the auditor's commentary and proposed actions that the organization should take to address the problems.

Learn more about Income Tax

Related Questions

Explore