Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
a. Follow up of audit reports
• One of the primary responsibilities is determining that the auditee takes corrective action on
recommendations and resolves the system inefficiency identified.
• The follow up of audit issues shall be done at the time when the concerned area is audited
again. The team-in-charge therefore should ensure that a copy of the prior Audit report is
carried when proceeding for the audit. On follow up of the issues, if it turns out that the
management has not taken the corrective action that it should have then the observations
should be highlighted in this section.
• Government should consider the proposal that all high risk paras should be placed
before a committee, in a similar manner the way it is done in case of PAC
• Being an integral part of the Audit process, follow up should be scheduled along with the
other steps necessary to perform the audit. Follow up activities may generally be categorized
down into three areas:
‣ Casual - This is the most basic form of follow-up and may be satisfied by review of the
auditee's procedures or an informal telephone conversation. Memo correspondence may
also be used. This is usually applicable to the less critical observations.
‣ Limited - Limited follow up typically involves more auditee interaction. This may include
verification of procedures or transactions and in most cases is not accomplished through
memos or telephone conversations with the auditee.
‣ Detailed - Detailed follow up is usually more time-consuming and can include substantial
auditee involvement. Verifying procedures and audit trails as well as substantiating
account balances and computerized records are examples. The more critical audit
findings usually require detailed follow up.
• Establish a clear understanding with the auditee and regularly apprise them regarding audit
progress and findings. Determine the frequency of progress updates and management
levels to be apprised
• The Audit head should submit to Audit Review Committee a progress status report of various
audits as against the plan that was prepared for the Audit Cell.
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