AUDIT PROGRAMS AND ESTABLISHING THE AUDIT UNIVERSE
KELOMPOK VI : DIAN PURNAMASARI (A31115308), SITI HALIMAH LUKMAN (A31115313), STENLY PUTRA SALU (A31115323)
DEFINING THE SCOPE AND OBJECTIVES
An audit universe is the aggregate of all areas that are available
to be audited within an enterprise. Some examples of auditable
activities include:
• policies, procedures, and practices both on an enterprise level
and those specific to locations, such as at international units
• manufacturing, distribution, or supply chain units
• information systems on infrastructure and specific application
levels
• major contracts or product lines
• functions such as purchasing, accounting, finance, marketing
and mothers
ASSESSING INTERNAL AUDIT CAPABILITIES AND OBJECTIVES
Internal audit should analyze each of these potential internal
audit candidates in this way:
• establish high-level control objectives for each of the audit
universe candidates
• assess high-level risks for audit universe candidates
• coordinate the internal audit activity with other audit and
governance interests
• develop high-level control objectives for audits designated by
the audit universe
AUDIT UNIVERSE TIME AND RESOURCE LIMITATIONS
A next step should be to look at the preliminary audit universe
list and determine those audits that are required on an annual
or a semiannual basis.
Although we are still dealing at a very high level here, a next
step is to look at the remaining items in the preliminary audit
universe and determine if time and resources are available for
reviews of these items. Because of the ongoing enterprise and
market changes that we all experience, a time span here should
not be more than five years, and more preferably three years.
“SELLING” THE AUDIT UNIVERSE TO THE AUDIT
COMMITTEE AND MANAGEMENT
The CAE and a key internal audit team may go through
massive efforts to build and maintain the internal audit
universe and may have solicited the help and advice from
senior management in the contents and assumptions of
this audit universe, but the audit committee is the entity
responsible for reviewing and approving such a document.
ASSEMBLING AUDIT PROGRAMS : AUDIT EVIDENCE KEY
COMPONENTS
• audit program formats and their preparation
An audit program is a procedure describing the steps and
tests to be performed by the auditor when actually doing
fieldwork.
• types of program audit evidence
The internal auditor should gather audit evidence in
support of the evaluation, what internal audit standards
call sufficient, competent, relevant, and useful.
AUDIT UNIVERSE AND PROGRAM MAINTENANCE
The audit universe document is a general description of all of
the audit units that an enterprise internal audit function may
review. It is a plan that defines the breadth and scope of
internal audit activities.
The audit universe document is not something that should be
changed on a regular basis whenever there is some small
enterprise change. However, internal audit should have
processes in place to keep the audit universe current and
updated with perhaps regular quarterly reviews.