Krisly Ann Bagro

BSA-3

Strategic Business Analysis

Written works 1
1. Describe the phases of the audit that would be performed after the preliminary survey is
completed.
 Reporting- The audit report is the engagement's deliverable product. This written report
provides a review of the specific audited area as well as positive and negative audit
observations. Any audit findings are noted in the report along with recommendations to
management and management’s action plan. Audit clients will have the opportunity to
review and provide input on the wording of the final report before it is issued to ensure
accuracy.
 Follow Up Monitoring- When management responds to a recommendation, it usually
includes a deadline. Internal Audit will utilize this schedule as a benchmark for follow-up
operations. Internal Audit intends to solicit comments on the audit process and overall
audit experience at the conclusion of each engagement so that we can continue to
improve our abilities and service.

2. Identify the risks associated with malfunctioning controls.

 Information Risk - the probability that the information circulated by a company will be
false or misleading.
 Inherent Risk- it indicates the probability of any material misstatements in the system
caused by factors other than an internal control failure.
 Detection Risk- it is the possibility that the material misstatement will not be located or
detected in an accounting system.