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#105081 - 08/09/03 08:02 PM Audit program
Joe Offline
Member
Joe
Joined: Aug 2003
Posts: 74
Overseas
The Head of Internal Audit wants us to give the auditee a copy of our audit program if they ask us to. What do you think?. To be honest, I am totally against it. For the simple fact that once the auditee knows our sampling method, for instance, it will be easy for them to commit a fraud. They will be aware of how we normally do our job. Or there are some parts in the audit programs that should be omitted, if we have to provide them with a copy.

I am really interested in your thoughts.

Thanks

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Audit
#105082 - 08/11/03 02:12 PM Re: Audit program
BRubble Offline
New Poster
BRubble
Joined: Jun 2003
Posts: 18
Midwest
I personally would not give an auditee a copy of my programs. We have a cross training program in our institution where we have to visit two pre-assigned departments per quarter and two come to your department as well and I don't even share the programs then. I agree with you that if they see how you do your audits it opens up the opportunity for fraud. What is your supervisor's reasoning for doing this?

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#105083 - 08/11/03 06:41 PM Re: Audit program
Joe Offline
Member
Joe
Joined: Aug 2003
Posts: 74
Overseas
My supervisor’s reasoning is that we have nothing to hide; our aim is to improve the controls. If the auditee clean their house by simply looking at our audit program then why not! Also we are trying to improve the image of the audit department by not playing as policemen, we are all working as a team.

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#105084 - 08/11/03 07:05 PM Re: Audit program
Jayda's Mom Offline
100 Club
Joined: Jul 2002
Posts: 220
North
I give all departments a copy of my workpapers so they will know every area that the audit will focus on. This way there are no surprises. As for the audit program...I would stay away from giving sampling information as, you are correct, the temptation for fraud increases.

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#105085 - 09/08/03 09:56 PM Re: Audit program
Risk Officer Offline
100 Club
Joined: Apr 2001
Posts: 205
Dallas
I wouldn't have a problem sharing anything with management that may be found in any audit manual. ICQ's, procedures, etc.

The main thing I would hold close to the vest are issues such as materiality thresholds (confirm all transactions over $x), sample sizes, monitoring criteria (i.e. in regards to employee accounts, you may filter out any employee with more than five deposits to their account for a closer review...I would not disclose this), etc. In regards to various monitoring criteria, I might actually vary the criteria periodically.
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