Internal Audit Quality

Chapter 13Planning the Engagement

Failing to plan is planning to fail.

—Winston Churchill

Effective audit planning sets the foundation for a quality engagement. It allows the internal audit function to identify the areas in which it will focus its effort, and helps to ensure that the engagement is completed efficiently and effectively.

Planning provides an opportunity for internal auditors to familiarize themselves with the operations and activities of areas under review. It promotes a structured and strategic approach to conducting internal audit engagements, and the success of an engagement often rests on how well planning has been undertaken.

Purpose of Engagement Planning

Internal audit engagements are undertaken for a variety of reasons. Although their overall purpose is to support the organization to improve governance, risk management, and control processes, an individual engagement will have a specific area of focus. This focus will be influenced by management expectations, the type of engagement being undertaken, and the area or activity being reviewed. The chief audit executive should be clear about the purpose of the engagement prior to commencing.

Engagement planning allows the internal auditor to do the following:

• Obtain a comprehensive understanding of the operations and activities of the area under review in order to focus on significant risks.
• Ensure alignment between internal audit engagements, the annual audit plan, and the internal audit charter.
• Ensure ...