Summary

In this chapter, you explored various aspects of audit project management and learned about different sampling techniques. You also explored different audit evidence collection techniques, reporting techniques, and practical aspects of CSA.

The following are some of the important takeaways from this chapter:

• The initial step in designing an audit plan is to determine the audit universe for the organization. The audit universe is the list of all the processes and systems under the scope of the audit. Once the audit universe is identified, a risk assessment is to be conducted to identify the critical processes and systems.
• Statistical sampling is the preferred mode of sampling when the probability of error must be objectively quantified.
• It is advisable to report the findings even if corrective action is taken by the auditee. For any action taken on the basis of audit observation, the audit report should identify the finding and describe the corrective action taken.
• The objective of CSA is to involve functional staff to monitor high-risk processes. CSA aims to educate line management in the area of control responsibility and monitoring. The replacement of audit functions is not the objective of CSA.
• Agile auditing is a flexible approach to auditing to better adapt to rapid changes in the business environment. Breaking audits into smaller, manageable “sprints” allows for quicker identification of risks, enhanced collaboration with stakeholders, and continuous improvement of audit processes. This method is especially effective in dynamic environments where traditional audit processes may be too slow to respond to evolving risks and priorities.
• QA in the audit process is essential for ensuring audits are reliable and effective by adhering to established standards, with the audit committee providing oversight, IS auditors engaging in continuous education, and performance monitoring of the IS audit function. These practices help maintain the independence and objectivity of audits, enable auditors to stay updated on technological and regulatory changes, and ensure audits are continuously improved to meet their objectives.
• AI is transforming the audit process by increasing efficiency, improving accuracy, and providing deeper insights through the rapid analysis of large datasets. While AI enhances the speed and effectiveness of audits and facilitates continuous monitoring, it is crucial to manage risks such as data privacy, algorithmic bias, and reliance on technology by ensuring data quality, maintaining human oversight, and regularly updating AI models.

In the next chapter, you will explore the enterprise governance of IT and related frameworks.