Compliance Audit - Session 3

What is the type of engagement prescribed for compliance auditing in COA?

• Direct Reporting

• Attestation

It refers to the area, extent, and time period covered in the audit of a given subject matter. It is a statement of the focus, extent, and limits of the audit in terms of the subject matter’s compliance with the criteria.

• Responsible Party

• Audit Scope

• Materiality

This is composed of policies, structure, procedures, processes, tasks, and other tangible and intangible factors that help the audited agency to respond appropriately to risks of noncompliance with the compliance requirements.

• Leadership and Governance

• Accounting System

• Internal Control System

It is determined by identifying the level of noncompliance that is likely to influence the decisions of the intended users.

• Audit Risks

• Materiality

• Audit Response

It is the risk that the auditor’s report, conclusion, or opinion may be inappropriate.

• Inherent Risk

• Control Risk

• Detection Risk

• Audit Risk

Together, these documents describe how the audit will be performed to issue reports that will be appropriate in the circumstances, the resources needed to do so and the time schedule for the audit work.

• Understanding the Agency Template

• Fraud Risk Assessment Template

• Audit Strategy and Audit Plan