Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
working on the roject. All audits shall be conducted in line with the approved annual audit
plan prepared at the beginning of the year.
Review results of prior reports
The Audit team selected for conducting the audit shall review prior year reports of the area
under audit. This is required for the following purpose:
• Develop an understanding of the systems and procedures of the department being audited
• Assess the attitude of the auditee in respect of internal controls
• Understand the nature of issues that were existing earlier
• Document areas that need to be followed up
• Prior year reports should be reviewed by a senior member of the audit team as a first step
towards planning of the audit.
Updation of risk assessment of each department/ area to be audited
Similar to the risk assessment done at the beginning of the year, it shall be necessary to do
a small scale exercise again prior to commencement of audit work. This would entail the
following tasks:
• Interview key officers performing critical tasks in the function to understand their problems
and concerns.
• Identify control objectives of various activities performed by the department. (Control
objectives may be defined as objectives of internal controls within a department.)
• Identify process flow of the work done in the department.
The process of interaction prior to the audit shall also be useful in sharing the Auditor‘s
knowledge of the area with the auditee. The auditor should indicate the time schedule of the
audit to the key personnel in the department and provide them with a list of information that
would be required by them to perform their work.
Preparation of planning document
The Planning Document shall consist of information relating to the background of the
Department, Organizational Structure of the department, a brief description of the job
responsibilities of each important person in the department a brief description of Financial
Aspects of the department, List of Current Events which could have an impact on the audit
and any other information that may be necessary.
Page 13 of 705