This article shows us in a simple way elements of vital importance to take into account for the preparation of the Audit File, as it constitutes an aspect of mandatory consultation when carrying out subsequent Audits or Verifications. It is intended with the same to offer criteria and techniques for the elaboration of the File that may be taken to homogenize the presentation of the same. Possible manifestations of Risk are also presented in this process.
Introduction
The Audit is defined as:
“A systematic process, practiced by the auditors in accordance with established technical standards and procedures, consisting of objectively obtaining and evaluating the evidence on the statements contained in legal acts or events of a technical, economic, administrative and other nature, in order to determine the degree of correspondence between these statements, the current legal provisions and the established criteria. "
Internal Audit is one that is practiced as an instrument of the administration itself in charge of the independent evaluation of its activities.
Consequently, Internal Audit must function as an activity designed to add value and improve the operations of an organization, as well as contribute to the fulfillment of its objectives and goals; providing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and direction processes.
The Audit services include the objective evaluation of the evidence, carried out by the internal auditors, to provide an independent conclusion that allows qualifying the compliance with the policies, regulations, standards, legal provisions or other legal requirements; regarding a system, process, sub-process, activity, task or other matter of the organization to which they belong.
In any well-organized entity, and in order to maintain vigilance over the management control chain, it is necessary to create a systematic review and evaluation program to verify that the delegated responsibilities have been well directed and that the established policies and procedures are have been carried as planned.
In addition, it is of utmost importance that there is a regular review by qualified personnel to determine that the internal control system in general is adequate, and through constant testing, to determine that they have been operationally effective. If there are failures, deficiencies or changes in the existing conditions, due to which the internal control system is ineffective, it must be modified appropriately, making the necessary changes to the new situations.
We must insist that regardless of the supervision exercised by the internal auditor over compliance with the responsibilities delegated by management to its executives, and the constant verification of compliance with the internal control systems in force, it is part of their responsibility to Obtaining sufficient and competent evidence that allows it to rule on the accuracy of the economic-financial situation presented by the entity and whose results are shown in the financial statements that are periodically issued.
We consider that an internal auditor can become the eyes and ears of the management of the company, taking into account, not only their qualification and moral ethics, but also because it is an official who over time manages to obtain a high command of all and each of his functions of the entity where he works, which allows him to become an advisor to or to the business management executives.
Development
In previous Topics we have explained the importance of the Audit process and let us remember:
“The Audit is an activity dedicated to executing services that consistently adds values from the development of different tasks and activities that must be systematically fulfilled, taking into account a chain of values executed through sub-processes that identify the logical continuity of the Audit process, therefore In order to guarantee a uniform composition and adequate format of the "Audit Work File", we propose some useful techniques and tools in order to guarantee the organization of the documentation of the audits carried out on the entities subordinate to a dependency, or by the services provided to another independent economic-accounting unit.
The File requires adequate preparation and execution of the different stages and / or processes of the audit.
Once the Audit is completed and after the corresponding Report has been prepared, the working papers are organized to be filed in the permanent Archive, these can be consulted in future audits, or supervised by other organizations or specialized personnel of the Organization.
After being arranged and listed in the Index, the working papers are ready for storage. A satisfactory storage procedure is one that protects against hazards such as fire and theft, and ensures that working papers can be found quickly and consulted when necessary.
Some working papers that are not accessible are obviously of little use, so that the auditor once the audit is finished can destroy those working papers that do not have any information in relation to the Report, and which of course constitute useless working papers. This is evidently done, after careful review.
The Work Records must remain in the offices for no less than five years, and keep the oldest for a Passive File determined for this purpose. Permanent files are of course always kept close at hand. The question of how long the work papers should be retained is subject to controversies, this depends on limitations that restrict the time within which legal action can be exercised, and varies according to the State and the type of Organization. However an auditor can safely say that certain working papers have no possible future value.
The fundamental objectives of this sub-process or stage are, among others:
- Organize the documentation of all the work papers originated in the performance of the audit corresponding to:
1. Exploration
2. Planning
3. Execution
4. Report
- Allow the immediate location of a certain work paper Consult findings in the face of verifications of different issues Allow future auditors to study the characteristics of the entity and / or significant results in the face of certain economic events Recognize the indexing of each paper, brands Protect documentation of the audit against theft, fire.
The "Audit Work File" will be enabled by following a set of indications that ensure the aforementioned objectives:
1. Prepare a "File of Audit Work", for each Management and / or Unit, in which the working documents of the audits carried out are filed, whether they are Financial, Commercial, IT, Systems or other Thematic, Regular or Special.
2. Identify the documentation of each audit by its cover or title page, which contains the general data of the audited entity, number of the Work Order, name of the acting auditors, indicating the one who acted as Group Leader, as appropriate, date of start and end of work and total number of auditors - days employed, as well as the resulting qualification.
3. Complete the parameters established for the preparation, organization and conservation of work papers.
4. Keep and safeguard the file for a period of at least five years from the date the audit is concluded.
5. In order to standardize and organize the documentation in a logical and functional order, the documents will appear on file in the "Audit Work File" in the following order:
- Identification Cover Sheet Control of the Documents Letter of dispatch of the Final Report Copy of the Final Report Audit Information Act Audit Information Act to employees, if required Draft Report, prepared by the acting auditor or Head of the Audit Group Work Order Letter Presentation Exploration Planning Results of supervision work in the field and / or table Measures Plan (presented by the audited entity, to eradicate the deficiencies detected by the audit) Auditors Control Sheet - Days used Minutes Information and Analysis of Deficiencies and Violations by Areas or Issues Act of Requirements Act of Occupied Documents Act of Return of Occupied Documents Statements (by employees,officials and leaders on clarifications requested by the auditors) Discharges by employees, officials and leaders in relation to the allegations or challenges that were raised.Act of Delivery and Return of Audit File Documents Work Papers.
- • BG Balance Sheet • ER Income Statement • EC Statement of Cost of Production and / or Merchandise Sold • AJ Adjustment Entries • N Notes • AZ Documentation gathered in the course of the checks and investigations carried out, organized by Accounts and grouped by subject Other documents.
The last steps of an Audit are those referred to the Meeting of Information and Analysis of the Final Report and later the preparation of the Plan of Measures to eradicate the deficiencies detected, the derived documents such as the Information Act and the Plan of Measures, will be filed in the file in accordance with the provisions of the file index, to facilitate its location and handling and will be added to make the folio of the documents that make up said file, taking into account the Document Control Sheet with the order and page numbers that corresponds to them.
6. All the documents that make up the file are numbered consecutively on each page from the order conceived in the Document control sheet of the aforementioned File, and followed by this number a diagonal is placed and the digit that corresponds to the last document that makes up the Proceedings.
The P / T are organized by subject and must follow the logical order of the development of the work, placing first the documents related to the general aspects of the audit.
The P / T made up of columnar sheets, are folded in such a way that their identification is easy.
Each File has its cover, which is titled in the upper center: audit file and in subsequent lines and in several spaces it is exposed:
- Category. Work Order number Name of the audited entity Body to which it is subordinate Type of audit Start and end date of the audit Participating auditors and their positions.
The files are controlled through the Registry of Executed Audits.
The files are filed according to the number of the corresponding Work Order and are kept and safeguarded for a period of five years from the date of conclusion of the audit. If a new audit has not been performed within said term, the files must be kept until another audit is performed.
The audit files that, due to their classification, require special conservation, are filed in accordance with the provisions for each case, specifically.
The audit file is classified according to the audit cataloged in accordance with the provisions of the State Secret Law and its regulations or other legal provisions. The category or classification that is granted is recorded in the upper right margin of the cover of each file, where the number of the copy and the number of each sheet must also be recorded.
These documents can be originals or photocopies, depending on their use and destination.
The files made up of the aforementioned documents are for the exclusive use of the organizational unit that carried out the work and access to them must be authorized by its highest level or another superior of the Ministry itself.
Document Control Sheet
The Document Control sheet has the dual purpose of facilitating the location of documents within the audit file and, at the same time, being able to determine if any of them are missing.
In it, all the documents and topics that make up the audit file are listed and a copy of it is placed as the first page of the file that makes up the file.
Responsable:
The file will be made up of:
- Acting auditors
Standards:
The File will constitute the file folder that contains all the documentation of the working papers originated in the performance of the audit corresponding to:
1. Exploration
2. Planning
3. Execution
4. Report (Working Papers contained in the Publication on “Execution”)
Risks:
After concluding the audit, the documentation referring to each audit carried out, including the working papers that constitute the tests and evidences of the conclusions that appear in the auditor's report ”. It is logical that they are ordered and filed, and it may happen that there are non-compliances, in the face of certain high-risk actions in the development of this, which cause:
1. That the auditor does not have all the evidence that supports the development of each of the stages.
2. Failure to prepare the audit work papers.
3. Fulfillment of extemporaneous tasks
4. Inadequate organization of the filing of work papers.
5. Impossibility for a third party to check the Report and the correspondence with the examinations.
