Internal Audit Quality

Chapter 14Performing the Engagement

It is easier to do a job right than to explain why you didn't.

—Martin Van Buren

The conduct, or fieldwork, stage of an engagement presents multiple opportunities for an internal audit function to demonstrate its professionalism and maturity. A quality internal audit function is distinguished by established, transparent procedures and a commitment to impartiality. Nonetheless, better practice internal auditing recognizes the need for effective collaboration with engagement clients and the enhanced value that this offers an organization.

Audit Evidence

The internal audit function should undertake fieldwork in accordance with the agreed engagement plan and work program. The work program should identify the specific methodology to be utilized during the engagement.

Internal auditors should collect enough evidence to make an informed opinion against the audit objective. The information required will vary and professional judgment is needed to determine the requisite amount and nature of evidence.

In assessing the adequacy of audit evidence, the internal audit function should consider:

• The nature of the engagement and the program or activity being reviewed
• The degree of risk involved in the program or activity and the adequacy of internal control
• The susceptibility of the program or activity to fraud, manipulation, or misstatement
• The materiality of possible errors or irregularities associated with the information collected

The evidence used ...