The audit objective is the foundation of planning and its clarity determines how to proceed with planning.Engagement planning starts with creating a strategy for how to approach and execute the audit, and the engagement plan should include the following steps: “One of the most common causes of unsuccessful audits is inadequate planning” says Wade Brylow, Internal Audit Director at Northrop Grumman. Below is a list of items to consider for the checklist: 1. A useful tool to create the audit engagement checklist is Smartsheet, which allows multiple people to work on the same document without overriding work being done by others. An engagement checklist can be as specific as required, based on the specificity of the audit however, here is a basic framework to create an effective checklist.

Audit engagement checklistĪn audit engagement checklist can clarify the audit elements, allowing the auditing team to undertake a holistic review, research, and execution of the audit. Having a checklist not only organizes but provides a comprehensive approach to the audit. The use of technology at this point can greatly assist in determining the right scope of the data in order to make it relevant to the intended audit. Today, most companies and industries rely heavily on data, and the ability for auditing teams to examine and analyze the client’s data is necessary.

Pre-audit engagementĪfter the decision is made to accept an audit engagement, the auditing team does a thorough risk assessment of the client’s company, which includes assessing the industry, management’s integrity, governance procedures, and internal controls.

But as the pandemic marches on, the utilization of technology - including automated tools - has become mandatory, especially in the tax and audit profession. Prior to the global pandemic, technology and automation started to take root as necessary tools for audit professionals. To ensure a timely and successful audit, creating and following a succinct outline of your audit strategy (including planning and preparation) is paramount. To that end, we’ve prepared an audit engagement checklist that explores how automated tools and techniques can enhance the processes and steps.Įach audit engagement is unique, but most share the basic steps of preparation, planning, field testing, and audit procedures, as well as subsequently rendering the audit opinion. In fact, the accounting and audit professions have gradually been drawn into the world of automation and automation tools. How their jobs are performed now requires more than accounting and audit knowledge and skills. Auditors know there’s never been a more challenging time to monitor and meet evolving regulatory changes and professional standards.

Audit file review checklist