How to Plan the Audit well in practice… (Audit Planning) PEMPAL 43rd IACOP – IAWG Meeting, Tashkent, Uzbekistan Presenter: Zondre Seitei | Ministry of Finance, South Africa | 24-26 October 2017

Planning… Where to Start? Two (2) Key things to consider when audit planning: 1. Organisational Strategic Objectives (Performance Info.) 2. Potential Risks Aim: To help the organisation achieve its objectives, by adding value to its processes through auditing.

The Audit Plans An organisation usually has a 5-year Strategic Plan and an Annual Plan (1-year); Similarly with Audit Planning: having a 3-year Rolling Plan and an Annual Plan; Prioritisation of the 3-year plan through ranking in terms of risk importance is key; Let’s look at the example…

Planning cont’d… Audit Planning must be based on available Budget and Resources. Organisational key processes must be assessed to identify any risks and potential internal control deficiencies that could preclude the organisation from achieving its goals. Following an inclusive approach by Interviewing management / arranging a Meeting with them to obtain areas of risk is important. Audit Objective(s) must be clearly defined in terms of risks identified.

Planning Process (up to Audit Programme) Audit procedures must be designed based on any potential risks and control deficiencies in line with strategic objectives’ of the organisation = Audit Programme It is prudent to have a library of procedures, to save time; Caution: Risks identified during planning must be covered by ‘Procedures’ Work papers must be self-explanatory (your conclusion must address your audit objectives)

Conclusion Internal Audit (IA) units should always use as a basis the organisations objectives and risk planning, as focusing on these aspects is where IA can add the most value in helping an organisation achieve its objectives.

THANK YOU! Contact Details Zondre Seitei Senior Financial Analyst – Internal Audit Ministry of Finance, South Africa +27 12 406 9008 www.treasury.gov.za/ Zondre.seitei@treasury.gov.za