Audit a business for it operations, finance and technology procedures with risk based approach
I. Pre-Audit Planning
- Clarify the purpose of the audit.
- Determine specific areas to be audited.
- Set measurable objectives for evaluation.
- Establish timelines and deliverables.
- Ensure alignment with organizational goals.
- List all relevant stakeholders involved.
- Schedule initial meetings to discuss the audit.
- Establish preferred communication methods.
- Define roles and responsibilities for each stakeholder.
- Ensure regular updates and feedback mechanisms.
- Review organizational structure and key processes.
- Collect financial statements and operational reports.
- Analyze industry benchmarks and performance metrics.
- Identify regulatory requirements impacting operations.
- Gather historical audit reports and findings.
- Compile a list of past audits and outcomes.
- Evaluate the implementation of prior recommendations.
- Identify recurring issues or unresolved findings.
- Discuss findings with relevant stakeholders.
- Use insights to refine current audit focus.
- Outline the methodology for risk assessment.
- Identify categories of potential risks (e.g., operational, financial).
- Engage stakeholders for input on risk perception.
- Prioritize risks based on likelihood and impact.
- Document the framework for reference throughout the audit.
II. Risk Assessment
- Gather information on IT operations, finance, and technology.
- Identify potential risks through interviews and documentation.
- Evaluate risks based on historical data and industry standards.
- Engage stakeholders to validate identified risks.
- Assess the potential impact on business operations.
- Determine the likelihood of each risk occurring.
- Use a risk matrix to visualize impact versus likelihood.
- Involve cross-functional teams for comprehensive analysis.
- Rank risks using a scoring system.
- Focus on high-impact, high-likelihood risks first.
- Consider regulatory and compliance implications.
- Review prioritization regularly with stakeholders.
- Create a risk register to detail each risk.
- Outline specific mitigation strategies for each risk.
- Assign owners for monitoring and managing risks.
- Ensure documentation is regularly updated and accessible.
III. IT Operations Audit
- Identify key stakeholders and their roles.
- Analyze reporting lines and decision-making processes.
- Evaluate alignment with business objectives.
- Check for documented governance frameworks.
- Assess effectiveness of communication channels.
- Review existing policies against industry standards.
- Check for regular updates and revisions.
- Evaluate training programs for staff on policies.
- Confirm compliance with legal and regulatory requirements.
- Document gaps and recommend improvements.
- Review asset inventory for accuracy and completeness.
- Check for asset tagging and tracking processes.
- Assess lifecycle management of IT assets.
- Evaluate disposal procedures for obsolete assets.
- Ensure compliance with financial and regulatory reporting.
- Review backup schedules and storage locations.
- Test restoration processes for effectiveness.
- Assess disaster recovery plan documentation.
- Evaluate training and awareness programs for staff.
- Check for regular updates and drills.
- Review firewall and intrusion detection configurations.
- Evaluate encryption protocols in use.
- Assess incident response plan effectiveness.
- Check for regular security audits and assessments.
- Document findings and recommend enhancements.
- Evaluate user provisioning and de-provisioning processes.
- Check access rights against least privilege principle.
- Review authentication methods and password policies.
- Assess monitoring of access logs for anomalies.
- Document any vulnerabilities and suggest corrections.
- Review monitoring tools and metrics used.
- Assess frequency and accuracy of performance reports.
- Check for alerts on performance degradation.
- Evaluate response times and resolution processes.
- Document areas for improvement in monitoring practices.
IV. Finance Audit
- Gather current financial policies and procedures documentation.
- Verify alignment with relevant laws and regulations.
- Identify any gaps or inconsistencies in documentation.
- Engage with staff to assess understanding of policies.
- Recommend updates or training as necessary.
- Collect the latest financial statements.
- Cross-check figures against source documents.
- Look for discrepancies or unusual transactions.
- Ensure all necessary disclosures are included.
- Summarize findings and highlight areas of concern.
- Review the design and implementation of internal controls.
- Test the effectiveness of key controls.
- Evaluate segregation of duties within finance teams.
- Identify control weaknesses and recommend improvements.
- Document findings for management review.
- Examine the budgeting process and methodologies used.
- Assess the accuracy of past forecasts against actual results.
- Interview stakeholders involved in the budgeting process.
- Identify areas for improvement in forecasting accuracy.
- Document best practices and potential enhancements.
- Analyze the methods used for revenue recognition.
- Verify compliance with applicable accounting standards.
- Review documentation supporting expense claims.
- Check consistency in reporting practices.
- Recommend adjustments for compliance and clarity.
- Review aging reports for accounts payable and receivable.
- Evaluate the effectiveness of collection and payment processes.
- Check for any overdue accounts and follow-up actions.
- Assess terms and conditions with vendors and customers.
- Identify opportunities for process improvements.
- Review existing risk management policies and frameworks.
- Identify key financial risks faced by the organization.
- Evaluate the effectiveness of mitigation strategies in place.
- Engage with management on risk awareness and culture.
- Document recommendations for strengthening risk management.
V. Technology Procedures Audit
- Analyze the current technology strategy.
- Identify key business objectives.
- Ensure technology initiatives support these objectives.
- Review alignment between IT projects and business goals.
- Document any gaps or misalignments.
- Review the software development lifecycle (SDLC).
- Evaluate change management policies and procedures.
- Check for version control and documentation standards.
- Assess testing and deployment practices.
- Identify any risks in current processes.
- Review vendor selection criteria and processes.
- Assess contracts for compliance and risk clauses.
- Evaluate performance monitoring and review mechanisms.
- Identify key risks associated with third-party services.
- Ensure ongoing risk assessments are conducted.
- Review security policies and procedures.
- Assess compliance with relevant regulations (e.g., GDPR).
- Evaluate incident response and recovery plans.
- Examine access controls and authentication methods.
- Identify vulnerabilities and mitigation strategies.
- Assess data classification and ownership policies.
- Review data integrity and quality controls.
- Evaluate data access and sharing protocols.
- Ensure compliance with data protection regulations.
- Identify gaps in data management practices.
- Review training materials and content.
- Evaluate the frequency and coverage of training sessions.
- Assess employee participation and feedback.
- Identify knowledge gaps in critical technology areas.
- Ensure alignment with current technology trends.
VI. Reporting and Follow-Up
VII. Continuous Improvement
- Define key risk indicators relevant to operations.
- Implement regular assessment schedules for identified risks.
- Utilize technology for real-time monitoring and reporting.
- Involve cross-functional teams for comprehensive risk evaluation.
- Create anonymous channels for stakeholders to submit feedback.
- Hold regular meetings to discuss audit findings and suggestions.
- Incorporate stakeholder input into future audit planning.
- Recognize and address concerns raised to improve processes.
- Review past audit outcomes and identify improvement areas.
- Research current industry standards and trends in auditing.
- Revise procedures to integrate effective practices and insights.
- Train staff on updated procedures to ensure compliance.
Use in Manifestly