Chapter 7: Audit Planning Process

1. In order for an audit to be effective it must, by definition, _____________.

2. Part of the planning process involves identifying the _____________ to be performed in the course of an audit.

3. Obtaining a clear understanding of the business objectives of the area under review is a key element of the _____________ stage of planning an audit.

4. Once the auditor has identified the _____________ as to the achievement of the control objectives, the appropriate audit technique and audit tools may be selected.

5. Once the _____________ of the area under review are clearly and fully understood, the auditor may then proceed to identify those controls relied upon.

6. As part of planning, the auditor must determine the _____________ for the operation under review.

7. Threats which management cannot directly control, but for which they must nevertheless develop a coping strategy are known as _____________ threats.

8. It is only once the team has been selected that the full time extent of the audit can be determined, because that time taken will be dependent on the _____________ and _____________ of the individual team members.

9. The audit team leader will normally draft an _____________ outlining the information pertaining to the forthcoming audit.

10. The preliminary audit program is a _____________ of _____________ to be carried out during the course of the audit.

11. The critical element of an audit program is the determination of _____________ will be examined, and _____________.

12. The planning for the audit report begins at the _____________ stage of the audit process.

13. It is the responsibility of the in-charge auditor to _____________ and _____________ the audit program prior to the commencement of actual work by the audit team.

14. The objectives of the preliminary survey are to gain an _____________ of the auditee's operations and to gather _____________ for further audit planning.

15. Preparation of detailed descriptions of the auditee's internal controls related to the areas under review is conducted as part of the internal control ___________ and _____________.

16. A certain amount of expanded audit testing will be required in order to determine whether the internal control structure is _____________.

17. As part of audit findings, _____________ are those standards against which observed conditions will be measured.

18. As part of audit findings, _____________ refer to what was actually observed during the course of audit testing.

19. As part of audit findings, _____________ refers to the impact on the business associated with any observed problem.

20. As part of audit findings, _____________ of the problem addresses failures of internal control or weaknesses within the internal control structures.

21. Where controls are deemed to be both adequate for a given level of a risk and effective in controlling that risk and the current control system is seen to be cost effective, the auditor may recommend that _____________ be made in the control system.

22. The reporting phase of the audit includes _____________ and _____________ the final results.

23. The final stage of the audit relates to the evaluation made by the auditors of _____________.

24. _____________ audits tend to involve the verification of figures produced by the computer systems.

25. _____________ audits focus on the effectiveness and efficiency of business operations.

26. _____________ audits focus on the management controls around the information processing function and facility.

27. _____________ audits can take the form of reviews of live application systems within the user arena.

28. _____________ audits, however, will typically involve interrogation of computer systems control files in order to match access rights granted against job requirements.