Auditing is a lengthy process of checking the accounts of an organization. An audit schedule is prepared for the purpose of guiding you and your staff through the entire process of audit. So what should an audit schedule contain?
In general it would contain the work to be done, the person who will do the work, any references for support papers etc.; and notes on any points which may require clarification.
Before you begin writing the audit plan, you need to research the organization you are auditing. Understand the business of the organization and the various processes like accounting, inventory, sales etc. Decide which of the processes you will be auditing. You may have to write separate schedules for each process. For example you cannot audit accounts in the same way you would audit inventory or sales.
A brief history of the organization noting any apparent fluctuations in reported values, any late submissions and follow up on those, any collections due and the amount of each along with the reasons.
The tax paying history of the organization being audited should be included. Whether previous taxes have been paid or are they defaulters. Any known issues with regard to tax payment.
Here is preview of a free Audit Schedule Template created using MS Project 2003,
Any audit schedule would contain is information about the schedule itself. It should state
- State which audit this schedule refers to detailing the organization and process being audited.
- The taxpayer’s number.
- The type of organization.
- Mention who can use the audit plan i.e. identify the people who will be involved in the audit.
- State clearly the purpose of the audit and the schedule itself
- Describe in detail the method of assessment to be used
- Include an organizational chart showing the hierarchy of authority so that the auditor knows whom to contact for information.
Details about the Audit Plan
Any audit plan should state the date of the last audit and a copy of the audit report should be attached. This gives the auditor an idea what to expect and which areas he should concentrate more on. This section should include:
- The date of last audit
- A copy of the last audit report
- A list of documents which must be examined in order of priority
- List of controls which are already in place and how each one should be checked.
- A copy of all forms that need to be completed.
- The level of computerization in the organization and if required, include details with respect to computerized auditing.
The Current Audit
Note down the details about the current audit. State clearly the time line for the audit, the controls which should be checked in priority order, and the general plan of action to be followed. Allow enough room for flexibility so that the person conducting the audit can vary the plan if the situation demands. Provide space for noting the variations and the remarks of the auditor.
When writing the audit schedule you should keep in mind that all aspects are covered and no loop holes are left open. At the same time the plan should be flexible enough so that the auditor can use his discretion and vary the schedule if the situation demands.
Here is download link for this Audit Schedule Template,