Afafagah

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STUDY UNIT SEVEN

PLANNING AND SUPERVISING THE ENGAGEMENT

7.1

7.2

7.3

7.4

7.5

7.6

Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Objectives, Risk Assessment, and Survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Scope and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Work Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Study Unit 7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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An engagement consists of (1) planning, (2) performing the engagement, (3) communicating

results, and (4) monitoring progress. The internal auditor’s responsibility is to plan and perform the

engagement, subject to review and approval by supervisors. This study unit concerns the first phase of

the engagement. Supervision is included because it begins with planning.

In this study unit, we present the pronouncements by The IIA that are relevant to the planning

phase. This study unit also contains supplementary information about certain aspects of the

engagement and the relevant pronouncements on supervision.

Core Concepts

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Internal auditors should develop and document a plan for the engagement. It should include the

(a) scope, (b) objectives, (c) timing, and (d) resource allocations.

Internal auditors should make a preliminary assessment of the relevant risks. Objectives of the

engagement should reflect the risk assessment.

The engagement scope should suffice to meet the engagement objectives.

Engagement resource allocation depends on the nature...