An audit doesn't just require one auditor. There are many parties involved in the audit process both in collecting reports, checking evidence of financial statements and performance, to making opinions.
This is the so-called internal audit team or group. The audit team is a team that provides assistance to auditors in carrying out their duties.
The audit team is one of the important components in an audit that provides various inputs for both the auditors and the report.
Being part of the audit team is a responsibility and obligation that needs to be done jointly and synchronously. So as not to cause errors in some tahapan audit.
Generally, the audit team is the party trusted by the company based on the auditor's recommendation to assist in the audit process. Therefore, not just anyone can become a member of this team.
This article will further explain how the internal audit team is formed, what its structure and hierarchy are, as well as the tasks of the audit team based on the stages of report verification that take place. Please follow the explanation below.
What is an Audit team
Let's move on to the first discussion, which is about its general meaning. An audit team is a group of people responsible for assisting and completing the internal audit process of a report within a company.
Why is an audit team formed for internal audits? Because this group has the authority to review the financial statements before they are finally submitted to the external auditors.
External auditors generally operate independently, so they require assistance from internal parties before conducting the external verification process.
Thus, the internal audit team is a component of the checks that fall under the category of internal audits, but it also serves as an extension or... prelude for the conduct of the external audit.
So, how do you assemble an audit team? Generally, companies will hold an annual meeting to establish and operate an internal audit group in accordance with regulations.
In this case, the company tries to select people who are worthy and have the appropriate background to be part of the internal audit team.
Such as for example accountant managers, resource and financial managers and others.
Then, after selecting from that meeting, the company will distribute the audit schedule and the job descriptions for each role in the audit process. This way, the audit team will be able to move forward immediately.
Audit Team Structure
After understanding the general definition of an audit team and how this group is formed, it is now time to discuss the structure of this team.
The audit team is a work group that is structured and has its own hierarchy according to the jobdesk of each member.
Each member has their own authority and responsibilities. Here are three hierarchies in the audit team structure.
1. Information Technology Audit Division
The information technology (IT) audit division is responsible for assessing, evaluating, and ensuring that an organization's IT systems and infrastructure operate effectively, securely, and in compliance with regulations and internal policies.
This division plays a crucial role in maintaining and enhancing the security, efficiency, and operational effectiveness of IT systems within an organization.
2. Operational Audit Division
This division is tasked with evaluating the efficiency, effectiveness, and economy of a business organization's operations.
The main focus of this division is to ensure that business operations run in accordance with the organization's strategic goals and adhere to the established policies and procedures.
3. Performance Audit Division
The performance evaluation division is responsible for assessing the effectiveness and efficiency of an organization in achieving its strategic goals.
The main focus of this division is to ensure that resources are used optimally and that the results achieved align with the established targets.
The divisions synergize with each other to realize an effective and transparent checking process that can be understood by auditors.
8 Tasks of Audit Team
Of course, the audit team is a group that has several tasks in carrying out its operations to assist auditors and complete the internal audit process. Here are eight tasks of the audit team.
1. Gather Initial Information Related To The Auditee
The main task of this team is to collect preliminary information about auditee, namely units within the company that will check the report.
It includes an understanding of work procedures, organizational structure, and daily operational reports. This information is important for understanding the context and designing an appropriate audit program, as well as determining areas that require special attention during the audit.
2. Evaluation Of Operating Efficiency
The task of the audit team is to assess whether resources (such as labor, materials, and technology) are used optimally to achieve maximum results.
Then they also need to identify areas that have waste or inefficiency and provide recommendations for improvement.
3. Reviewing Documents
Their next task is to review all documents and requirements related to the auditee, such as company policies, standard operating procedures, and guidelines.
This is because auditors need to understand the standards and requirements that must be adhered to by the auditee, as well as ensure compliance with them.
This review also helps auditors identify the parameters that will be used in the audit process.
4. Operational Risk Management
Then the audit team's task is to carry out adequate operational risk management in accordance with regulations.
The audit team will identify operational risks that may affect the organization's performance.
5. Designing An Audit Program
Furthermore, the responsibility of the audit team is to design a checking program that includes a detailed plan, such as its type, scope, and methodology.
Dan must create an annual schedule that organizes when inspections are to be conducted, ensuring that all areas requiring checks are covered.
6. Make Checklist
Making audit checklist it is very important because it serves as a guide during the audit. Checklist This is prepared based on the applicable requirements and standards, ensuring that all aspects that need to be examined are covered.
Checklist This is also used to verify the auditee's compliance with those requirements.
7. Perform Monitoring
The audit team needs to monitor the progress of follow-up actions to ensure that issues are resolved on time and improvements are made according to the audit recommendations.
Although this is the final stage before the report is created, monitoring is important to ensure that improvements are progressing well and that issues do not recur.
8. Make Report Of Findings
After the audit is completed, the internal audit team must prepare a clear and comprehensive report, including findings, evidence, and recommendations for improvement.
This report must be written in easily understandable language, as it will serve as the basis for further actions by the auditee and the company's management.
Conclusion
Thus, this article provides a complete explanation regarding internal audit groups. A time audit is a key component of internal auditing that provides effectiveness and efficiency in the overall audit process.
The audit team plays a crucial role in ensuring that the company's operations, finances, and systems run efficiently, effectively, and in compliance with applicable regulations.
By dividing tasks into various divisions such as checking reports related to information technology performance, operational checks, and performance inspections, the audit team can thoroughly evaluate different aspects of the business.
Each division has specific focuses and responsibilities that, together, help identify risks, oversee compliance, and provide improvement recommendations to enhance the organization's performance.
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