1 / 8

Through the Looking Glass  Real Audit Readiness Under the Auditor's Lens

Through the Looking Glass  Real Audit Readiness Under the Auditor's Lens. American Society of Military Comptrollers Washington Chapter June 2007 Luncheon. PwC. DoD Audit Readiness and Audit Process. Communication Coordination. Inspector General. DoD Components.

bernad
Download Presentation

Through the Looking Glass  Real Audit Readiness Under the Auditor's Lens

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Through the Looking Glass  Real Audit Readiness Under the Auditor's Lens American Society of Military ComptrollersWashington Chapter June 2007 Luncheon PwC

  2. DoD Audit Readinessand Audit Process Communication Coordination Inspector General DoD Components Discovery &Correction Phase AssessmentPhase ValidationPhase RecommendationsforImprovement Audit Phase OR SustainableProcesses AssertionPhase DCFO Evaluation of Assertion &Executive Steering Committee Endorsement

  3. 1988 USACE beginsCEFMS development 1993-1998 CEFMS deployed 1993-2001 AAA performs initial CFO audits 2002-2005 DoD OIG audits with heavy focus on PP&E June 2004 DoD OIG & USACEMemorandum of Agreement on PP&E April 2005 Chief of Engineers issues “Get Well Plan” Oct 2005 All Districts assert audit readiness Nov 2005 AAA completes validation review Dec 2005 USACE asserts readiness to ESC March 2006 ESC affirms USACE assertion April 2006 Contract awarded to PwC May 2006 Audit entrance conference held SOURCE: DRM, US Army Corps of Engineers Road to ReadinessKey Milestones

  4. Big PictureLessons Learned • Start very early to avoid an impractical timeline • Fully mine and bank the value of prior audits • Enhance readiness expectations and processes, using the auditor’s lens • Enable effective advance scoping by auditors • Size and sequence audit scope for practicality and optimum results • Precisely define audit scope, roles and expectations from the start • Stay poised for continuous learning, teamwork, flexibility and agility

  5. Management’s ControlsThrough the Auditor’s Lens Available direct savings from reliable controls Greater effort; higher cost Control Tests Substantive Analytical Tests Substantive Tests of Detail Less effort; lower cost • Control Environment • IT Controls • Manual Controls • Control Environment • IT Controls • Manual Controls Little or No Controls Reliability Significant Controls Reliability

  6. Common Perspectivesvs. The Auditor’s Lens

  7. IT Systems Significantto Financial Reporting • System A: Traditional transaction processing “feeder system” • System B: Ancillary system affecting key financial reporting objectives • Impact: IT general & application controls for both systems may need to be tested to support audit conclusions and optimum audit approach.

  8. Questions? Questions? PwC

More Related