What takes place in an audit?
The audit process consists of planning, fieldwork (i.e., information gathering, testing, summarizing, and evaluating), and reporting. As part of planning, an initial entrance conference is held with the auditee. The culmination of fieldwork results in a draft audit report that includes the audit’s purpose, scope, background, overall evaluation, and opportunities for improvement, if any. Opportunities for improvement include instances of noncompliance with laws and regulations, internal control weaknesses, and areas where economy and efficiency can be improved.After the fieldwork is completed, a thorough quality review of the audit work papers is performed to ensure that work was performed as planned and is properly documented. The draft report is reviewed to ensure that conclusions and findings are supported by evidence maintained in the work papers. At the exit conference, the draft audit report is presented to the auditee for discussion. The auditee is allowed thirty days to provide
