IAU prepares a 3-year rotational audit work plan on an annual basis for review and approval by the Audit Committee. The audit work plan is prepared based on the results of our audit risk assessment exercise in which functional / operational areas as well as their priority and frequency of audits are determined.
Normally, the auditees's Management will be advised of the scope, objectives and timing of the audit. However, some audits are required to be conducted on a surprise basis.
IAU finds out what systems, procedures and controls are in place and how they are operating by:
- interviewing staff;
- reviewing policies, guidelines and procedures;
- examining documents and records.;
- performing site visits;
- conducting evaluation of the internal controls ascertained and analytical review on the information obtained; and
- confirming with auditee on any observations noted.
An exit meeting will normally be held with the Management concerned to discuss the draft report and obtain agreement to the findings and recommendations. Management comments will be included in the report prior to its formal issue. Several months after issuance of the final audit report, a follow-up audit will be performed to confirm the implementation of the audit recommendations.
Audit reports (including follow-up audits) are issued to the Line Management, with copy to the overseeing Senior Management and President. Audit results, comprising major audit observations, recommendations and management comments, are reported to the Audit Committee on a quarterly basis.
