MODULE 6: PLANNING FOR GOVERNANCE AUDIT GOVERNANCE AUDITOR ACCREDITATION COURSE

Contents 1. Preparing for Governance Audit 2. Development of Governance Audit plan and programme 3. List of Documents to be reviewed for the Governance Audit process

Planning for Governance Audit a) The Governance auditor should plan his/her audit in a manner that the plan will help in carrying out the entire work effectively, within time and budgets. b) Audit planning should cover all phases of the audit process i.e. Preliminary phase, field work stages and reporting phases. c) Audit plan should incorporate the time allocation schedules as well as corresponding budgets.

Developing Governance Audit Plan a) Each audit plan will be different and tailored to the organisation’s needs. However, there are common elements of Governance that an audit reviewer should expect to see when reviewing the audit plan. b) The audit planning document should set out that the audit plan has been developed by: – taking account of the risks identified in the organisation;

Developing Governance Audit Plan(Ctd..) The audit planning document should also set out that the audit plan has been developed by: – using the experience of the organisation and the sector more generally to identify other areas of risk which may warrant attention – discussing all identified risks and other relevant issues with the organisation’s management to identify the potential scope of the audit.

Planning, Reporting and Liaison The audit plan should identify a number of audit days relating to the following: – quality control review – production of reports, including the management letter, draft and final audit report – attendance at audit meetings – regular contact with the organisation’s management – liaison with external audit and other parties – Safeguard audit assurance reviews, where applicable.

Timing The audit plan should set out the timing of the fieldwork and confirm the form and timeliness of reports to management and the audit committee. For example: – a report for each area of work undertaken within X days of finishing the fieldwork – a progress report for each audit area – report on Governance audit coverage to the audit committee (reporting to fit in with the committee meeting dates).

Budgeting The audit plan should set out the expected budgets of carrying out various assignments in the Governance Audit process. It should be economically viable to carry out the audit taking into account that the value of the report need exceed the costs associated.

Key activities captured in the planning a) Keep contact with the entity (those charged with governance. b) Seeking appropriate consultations and ensure that the conclusions there from are implemented. c) Setting the overall objectives for the assignment. d) Reviewing the time lines and budget. e) Organizing and attending the pre-governance audit meeting with the organization. f) Following-up with the organization on issues identified in the previous year’s management letter.

Documents to be Reviewed include: Major categories of documents to be reviewed include: 1. Procedures 2. Policies and Strategies 3. Reports 4. Terms of References (Refer to Audit Manual / Checklist for details)ManualChecklist

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