What happens during an internal audit?
Internal Audit first holds a pre-engagement meeting to find out the objectives the associated risks, and what controls are in place. We are required to consider operational risks and controls so we may discuss areas such as Health and Safety arrangements as well as controls over financial processes. We may also need further meetings with other members of staff to obtain more detailed information on the controls that are used. Tests are carried out to check that controls are adequate and are operating effectively. This may require sampling, observing work being performed, reviewing notes of meetings and holding discussions. We will then meet again with the management and staff of the operation to discuss our findings and any recommendations we wish to make in the report. After this meeting, a draft report is produced. The report includes an action plan that summarizes the recommendations, the agreed actions and timescales. Management will be asked to comment on the factual accuracy of t
