An internal audit plan template is considered as a properly instructed plan which is used when conducting an internal audit of a company or organization. It is a plan that is made before the actual internal audit starts which ensures that it highlights the areas which hold importance in the process, shows potential problems, process and procedure are well coordinated. The internal audit planning can also be considered as developing a detailed strategy regarding how to evaluate the internal setup of an organization, how to start an audit and how to complete inspection of books of accounts. It helps the process of completing audits efficiently and on time. The objective is to overcome all possible problems which a team of auditors can face during the process of audit. Moreover, it assists auditors to estimate the cost of the whole process and also helps overcome any misunderstandings.
Importance of Internal Audit Plan
An internal audit plan template includes all the steps and information regarding the quality which needs to stay stable while performing an internal audit of a company. The process of planning consists of specific procedures and precautions which are required to complete the audit. Going further, this plan should also include the following aspects; the scope of audit, the time period in which the audit occurred, name of the company and other necessary information of that company. The ultimate agenda of conducting an internal audit is to make sure all books of accounts are accurate and there are no fraudulent activities. A clean report from internal auditors reflects no issue found in the operation of an organization.
Importance of Internal Audit Plan
An internal audit plan holds great importance for many reasons. Besides importance, it also provides countless benefits, not only for an organization but also for corporate law enforcement agencies. The following advantages can be availed through internal audit;
• It defines the steps and procedures to accomplish the audit successfully.
• An internal audit plan ensures that the audits are done in a well defined way.
• It assists in recognizing the problem or hurdle an auditor may face during the audit process.
• This plan helps get the important documentation, records and possible evidence which may be needed while filing the audit.
• The internal audit plan sets up the scope of the audit and it also gives an idea of how much the audit will cost.
• It properly updates and informs everything regarding an audit to both the company and the auditor itself.
• It helps auditors to perform the whole process of an audit for an organization efficiently and make it worthy.
The Internal Audit Plan and Necessary Steps to Complete it
An internal audit plan should be straightforward and effective. The following steps should be considered while conducting an audit:
Analysis risks: It is an important thing to consider a company’s risk and how to deal with it. As it is a first step to mention all the possible risks related to the company. It is essential to pay attention to the factors that act as a hurdle for a company to achieve its objective.
Study the policies: when making an audit plan it is essential to have a proper understanding of account policies used in a company. It is always better to consider areas which are highly complex and have a high risk of making errors. This allows you to predict the possible risks.
Control materiality thresholds: It is necessary to consider the materiality threshold when making an audit plan for a company. It refers to the size of the company, which impacts on the decision-making process.
Creating audit process: The main part of the audit plan is creating the procedure to follow when conducting the audit for a company. This way you get an idea of what to do and when you have to do it.
Review the plan: it is essential to reassess and review your plan to check its clarity and accuracy.
Templates for Internal Audit Plan
