Lesson 7: Audit Prgm Mgmt Processes

Question 1

The need for audit program procedures is determined by:

1.
2.

Answer 1

1. Audit Program Mgr

2. Standards that govern the audit program

Question 2

Audit program procedures provide guidance for what two types of activities?

Answer 2

1. Conducting audits

2. Managing the audit program (admin controls)

Question 3

T or F

Audit service procedures should cover all five audit phases.

Answer 3

T - Numerous guides may be issued for various aspects of audit service procedures.

Question 4

Procedures need to be used when there is __________ ___________ to the well being of the org if not specifically followed.

Answer 4

unacceptable risk

Question 5

Procedures should add _________ to the audit process. If not, replace, change, or toss it.

Answer 5

value

Question 6

Mgmt techniques for changing behavior or actions include:

1.
2.
3.
4.
5.
6.

Answer 6

1. Communicate clearly and fully
2. Plan for implementation and establish milestones
3. Select, train, and prepare Auditors
4. Provide human and physical resources
5. Provide incentives for following rules
6. Provide feedback on progress

Question 7

Audit scheduling (frequency) should be consistent with, and depend on, the _______, _______, and ________ of the areas to be audited.

Answer 7

risk, history / importance

Question 8

In developing an audit schedule, audit scope must be determined. Audit scope may be a:

1.
2.
3.

Answer 8

1. function or dep’t (vertical - provides traceability)
2. control element crossing all dep’ts (horizontal - effective for common processes)
3. specific process - effective for sequential steps

Question 9

The actual steps for developing an audit schedule are
1.
2.
3.

Answer 9

1. Determine the areas (org’s) to be audited
2. Assign resources
3. Schedule individual audits

Question 10

Who is responsible for what documents are needed to assure the consistency of audits performed and adequate support?

Answer 10

Audit Program Mgr

Question 11

Determination of audit record retention requirements is based on ________ _________.

Answer 11

legal requirements

Question 12

All of the following should be retained long-term after an audit except

• the audit report
• the closing letter
• follow-up notes on req’d corrective actions
• the audit plan
• the blank audit checklist

Answer 12

• follow-up notes on req’d corrective actions

Question 13

T or F

Audit program mgmt should be carried out by those with practical knowledge of company mgmt and business goals.

Answer 13

F - …knowledge of quality audit procedures and practices