Workflow Templates: Internal Audit Preparation Checklist

Review previous audit reports and any relevant findings related to the current audit area

Understand the business processes and controls to be audited

Determine the audit scope and objectives, including risk assessment and materiality considerations

Prepare an audit engagement letter and communicate it to relevant stakeholders

Develop an audit plan with timelines and resource allocation

Collect and review relevant documents, such as policies, procedures, and previous audit workpapers

Prepare a list of required information and documentation and request these from the auditee

Document the audit procedures to be followed and evidence to be collected

Maintain a well-organized audit workpaper file to ensure all evidence is captured systematically

Use appropriate sampling techniques to select items for testing

Conduct interviews and walkthroughs with process owners and staff to understand and document processes

Perform tests of controls to assess their design and operational effectiveness

Carry out substantive testing of transactions and balances to verify accuracy and completeness

Document findings and exceptions identified during testing, including any deviations from expected controls

Review and confirm the accuracy of the information provided by the auditee

Compile audit findings and draft an audit report including recommendations for improvement

Discuss preliminary findings and recommendations with the auditee for their response and action plan

Finalize the audit report incorporating management's responses and action plans

Present the audit report to senior management and/or the audit committee

Establish a follow-up schedule to review the implementation of agreed-upon recommendations

Internal Audit Preparation Checklist