Chapter 8. Managing Your Audit Function

An audit function is essential in providing an independent opinion, as to the effectiveness of the internal controls to the board of directors and stockholders. Managing internal audit function requires a combination of internal and external audit resources. Many organizations establish an independent internal audit department headed by the Chief Audit Executive (CAE), who directly reports to the chairperson of the audit committee. In addition, the board of directors also retains the external auditors to provide an independent audit opinion. The audit management function includes planning, design walkthrough, testing, reporting, issue/remediation, and close activities. In this chapter, we will describe the key activities of the audit management process, share an approach for management of audit activities, and provide examples to automate the audit management function.