Internal Audit Key Process Diagram

Monitoring &
Strategic and Annual Planning Types of Audit Audit Process
Evaluation

BAICS Compliance Audit Audit Planning

Audit Execution
Control Performance
Significance and Annual Work Plan Management Audit Monitoring and
Materiality Control (AWP)
Evaluation
Risk Audit Reporting

Audit Follow-up
Internal Audit Risk Operations Audit
BASELINE ASSESSMENT OF INTERNAL CONTROL FLOW DIAGRAM

Components of Internal
Control System
Controls

1) Control Environment
Control Gap, Defeciencies and Breakdowns Interim Report
Operating
System - Key
Processes

2) Risk Assessment N NO NO
O

Test of
Controls
3) Control Activities YES
Y YES
E
S
Flow Chart, Narrative
4) Information and Support System Notes and Walk Review of B
Communication - Key Processes Through Oversight and
Control Internaltional
A
Universe
+ Develoment =
Bodies
R
5) Monitoring
CONTROL SIGNIFICANCE AND MATERIALITY AND CONTROL RISK FLOW DIAGRAM

CONTROL OBJECTIVES CONTROLS - Control Significance

and Materiality

- Control Risk

1) Safeguard Assets

Not Prioritized in the Strategic and

Operating System - Key Processes Annual Plan
2) Check Accuracy & Reliability of
NO
Accounting Data

3) Adherence to Manegerial Policies

Support System Key - Processes Assessment for Internal Audit Risk

YES
4) Compliance with LRP

5) Ensures 4 Es of Operations
INTERNAL AUDIT RISK ASSESSMENT FLOW DIAGRAM

FUNCTIIONS PROCESS FOR MANAGING RISK RISK

1. Advise the GB/AuditCom on all

matters relating to management control

Establishing the Context

2. Conduct management and operations
performance audit of the Agency
activities and its unts and determine the
degree of compiance with mandate, Risk Assessment Not Prioritized in the
policies, government regulations, Strategic and Annual
established objectives, systems and Plan
HIGH
procedures/processes and contractual Risk Identification
obligations

Communication and Consultation

Monitorung and Review

3. Review and appraise systems and
procedures/processes, organizational
structure, assetsmanagement practices, Risk Analysis
financial and management records,
reports and performance standards of
the agency/units covered

Risk Evaluation
4. Analyze and evaluate management
LOW
deficiencies and assist top management Strategic Plan and
by recommending realistic courses of Annual Work Plan

5. Perform such other related duties and

resposibilities assigned or delegated by Risk Treatment
the Head of Agencyor the Governing
Board thru the Audit Committee or as
may be required by law.
COMPLIANCE AUDIT FLOW DIAGRAM

Components of Internal Control System Controls Established Criteria/ Standards Output

1) Control Environment

Design

2) Risk Assessment
Compliance with Laws,
Regulations and Policies

3) Control Activities

Implementation
4) Information and Communications

5) Monitoring
MANAGEMENT AUDIT FLOW DIAGRAM

Components of Internal Control System Controls Control Objectives Output

1) Control Environment 1) Safeguard Assets

Operating System - Key Processes

2) Risk Assessment 2) Check Accuracy & Reliability of

Accounting Data
Control
Effectiveness
3) Control Activities 3) Adherence to Management
Policies

Support System - Key Processes

4) Information and Communications 4) Compliance with LRP

5) Monitoring 5) Ensure 4Es of Operations

OPERATIONS AUDIT FLOW DIAGRAM

"Doing things right" given the Doing the right things" achieving
available inputs and within a expected results and contributeto
specified timeframe sectoralgoals
Efficient Effective

Perform using the least amount of Consistent with the Code of Conduct
inputs within a specific timeframe and Ethical Standards

Economical Ethical

Input Evaluation Process Evaluation output Evaluation Outcome Evaluation

Quality Inputs Quality Process Quality Outputs Quality Outcomes
Laws, mandate, program,
Implementation, risk response,
organization, staff, system,
performance and compliance Products and Services Benefits and impact of change
resources, and manegerial
reviews
policies
Citizens' Needs Serving Citizens' Needs Satisfied Citizens' Needs Improved Quality of Life
AUDIT PROCESS FLOW DIAGRAM

Audit Engagement Planning

Audit Execution

Audit Reporting

Audit Follow-up