Local Audit Procedure

General Audit Methods

• The Audit Code sets out the general principles
of the audit approach to be followed by
auditors. The actual approach taken will d e
pend on the type of audit being carried out
e.g. opinion, regular ity, probity, performance
etc. Wherever possible an integrated
approach will be adopted e.g. in testing
transactions, say, purchase of stores, auditors
should consider the following aspects in one
sample test:
 General Audit Methods
• (i) Is there a procurement plan and adequate purchasing
procedures?
• (ii) Have tender procedures been followed where needed?
• (iii) Has the purchase been sanctioned and authorised?
• (iv) Is there evidence of receipt of stores ordered – quality &
quantity ?
• (v) Has the invoice been checked comprehensively?
• (vi) Is it classified correctly and duly recorded in accounting
records?
• (vii) Are there an y indication s of irregularities o r improprieties ?
• (viii) Are there any indications of poor value for money or excessive
cost etc?
• (ix) Has the audited body followed all due guidelines?
Key Internal Controls
Key Internal Controls
Planning
 Strategic Planning
• (i) A statement of key objectives of Local & Revenue Audit (Chapter 1);
• (ii) The time period over which all audit objectives w ill b e cover ed (3 to
5 year s);
• (iii) The audit areas or units to be audited (all auditable units);
• (iv) Knowledge of the business (Appendix 1);
• (v) Audit approach – the extent of system s-based and substantive
approach
• (Chapter 2);
• (vi) Extent of comput erisation of accounts;
• (vii) Staffing resources available – num ber, grades and skills and
• (viii) Development plans and tim ing e.g. for training, im plementation of
• Governm e nt Auditing Standards, Audit Code, Local Audit Manual and
• sustainability arrangeme nts.
Roles
Control Environment
Materiality
Risk
Risk
Evidence
Evidence
Reporting
Follow UP