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16.4.3 Conducting the Engagement

(Last Modified on August 14, 2020)

Internal Auditors are obligated by professional standards to act objectively, exercise due professional care, and collect sufficient, competent, relevant, and useful information to provide a sound basis for engagement opinions, observations and/or recommendations.

Work performed will be documented in working papers. Information included in the working papers must be sufficient, competent, relevant, and useful to provide a sound basis for engagement issues, observations and/or recommendations. Working papers may include schedules and analyses, documents, write-up, and flow charts. Evidential matter may also be obtained through interviews and observations.

Upon the conclusion of the fieldwork, the engagement team will summarize the engagement issues, observations and recommendations necessary for preparation of the engagement draft report. The engagement team will also meet with the clientÖгöÉÙ¸¾ÊÓƵ™s management team to discuss the issues, observations and recommendations noted. At this time, any concerns that the client may have with issues, observations and recommendations, will be resolved to the extent possible.

16.4.3.1 Utilizing Sampling Techniques in an Engagement

(Last Modified on January 30, 2024)

Sampling may be used to test less than 100% of a population. In sampling, the engagement team accepts the risk that some or all errors may not be found which could lead to erroneous conclusions. When sampling is used, the engagement team must:

1. determine the type of sampling to be used,
2. decide on the number of items to be selected, which should be based on the engagement teamÖгöÉÙ¸¾ÊÓƵ™s understanding of the relative risks and exposures of the areas reviewed, and
3. apply the results to the entire population subject to testing as appropriate.

Other substantive procedures may also be used to test accuracy of populations when sampling is not deemed appropriate or cost effective. Substantive procedures may consist of target testing, analytical procedures and physical verification.