Our auditor in-charge (AIC) and supervisory auditor for an individual audit engagement approaches management of each audit assignment as a project manager, following Project Management Institute (PMI) standard by recognizing and identifying the five-audit process life cycle: 1) Initiation Phase, 2) Planning Phase, 3) Execution Phase, 4) Audit Summary Phase, and 5) Closing Phase.
Below is a brief description and what is accomplished during each phase:
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Initiation Phase
During this phase, the audit team will coordinate with the customer to ensure their needs can be met and to establish an overall engagement strategy that sets the objective, scope, timing, and direction of the engagement.
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Planning Phase
This phase covers the adequacy and risk assessments, and completion of the fieldwork plan based on the results of the risk assessment procedures.
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Execution Phase
During this phase, the audit team performs the procedures developed to address the identified risks and specific audit objective, which includes obtaining and examining of audit evidence.
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Audit Summary Phase
This phase covers the summarization of the audit team’s findings and conclusions about the subject matter in relation to the criteria against which the subject matter was evaluated and the preparation of the draft audit report.
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Closing Phase
This phase covers the review and summarization of the contractor's comments on the findings and an evaluation of the impact on the final audit results. The phase concludes with the issuance of the final audit report, completion and review of all audit evidence and documentation, and the disposition of the audit package.