Managing Your Audit Function - Governance, Risk, and Compliance Topic for Oracle Applications - page 199

Managing Your Audit Function
An audit function is essential in providing an independent opinion, as to the
effectiveness of the internal controls to the board of directors and stockholders.
Managing internal audit function requires a combination of internal and external
audit resources. Many organizations establish an independent internal audit
department headed by the Chief Audit Executive (CAE), who directly reports to
the chairperson of the audit committee. In addition, the board of directors also
retains the external auditors to provide an independent audit opinion. The audit
management function includes planning, design walkthrough, testing, reporting,
issue/remediation, and close activities. In this chapter, we will describe the key
activities of the audit management process, share an approach for management of
audit activities, and provide examples to automate the audit management function.
Audit planning
The planning phase includes establishing the scope and objectives of each audit
engagement. The plan document also includes budget, timeline, and resources
assignments to perform the audit.
Once the audit plan is established and approved by the audit committee, the CAE
communicates the audit scope and objectives to the business manager.
This communication also outlines the key audit tasks, such as a formal meeting with
the managers, controls documentation requests, and other necessary audit steps.