How do you define audit universe?

How do you define audit universe?

Practice Advisory 2010-1, Item 1: “The audit universe is a list of all the possible audits that could be performed.” □ “A compilation of the subsidiaries, business units, departments, groups, processes, or other. established subdivisions of an organization that exist to manage one or more business risks.”

What is the purpose of creating and maintaining a universe of audit subjects?

However, there are significant benefits to internal audit and often the wider organisation in creating an internal audit universe including: An internal audit universe helps provide transparency to internal audit and the Audit Committee over the audit coverage of key businesses or functions at a point in time.

What is internal audit risk assessment?

The internal audit risk assessment primarily measures inherent risk, before any internal controls or management plans are applied. The organization may already have plans, processes and/or controls in place to mitigate many or all of the identified risks.

What is internal audit plan?

The annual internal audit plan (or just ‘audit plan’) is the list of audit engagements to be conducted in the coming year. Before they select which of the identified risks will end up on their annual audit plan as engagements, they’ll do their own assessment.

What is a process universe?

Process Universe Create a list of the primary business processes of the company. This will be your process universe and will serve as a basis for you to select your 15 critical processes.

How do you identify an audit universe?

An audit universe is the collective grouping of auditable ‘components’ – sometimes also called auditable areas, units or entities – that support the development of the internal audit plan and help to identify appropriate internal audit coverage that the chief audit executive (CAE) can then prioritise.

What is low risk appetite?

Risk appetite is the amount of risk an organization is willing to tolerate while implementing a project. Organizations with a low risk appetite will try to avoid high probability and high impact risks.

Is high detection risk good?

Detection risk results in the auditor’s conclusion that no material errors are present where in fact there are. Detection Risk and quality of audit have an inverse relationship: if detection risk is high, lower the quality of audit and if detection risk is low, generally increase the quality of audit.

What are the five components of internal control?

Internal control consists of the following five interrelated components and the seventeen principles associated with them.

• Control Environment.
• Communication (and Information)
• Risk Assessment.
• Control Activities.
• Monitoring.

What are the steps of an audit?

Steps of an Audit

• Management Notification. Generally, Internal Audit notifies auditees in writing when their area is selected for an audit.
• Entrance Conference.
• Audit Survey.
• Fieldwork.
• Draft Report.
• Exit Conference.
• Management Response.
• Final Report.