This memo captures all details for planning an internal audit, such as the internal audit team members’ names and roles, duration of the internal audit, location of the internal audit, company business hours, key contacts, internal audit scope and approach, deliverables, high-level work program, and high-level work schedule. This memorandum should be completed as part of the initial audit planning process and is meant to enhance audit efficiency.
The planning memorandum sets out the audit approach, how, whom and when each item in procurement records will be audited timing requirements of the audit and staff usage with time budget for each set of audit work. It generally contains the following;
• A summary of terms of engagement required to set out the nature of the audit work.
• A job timetable giving provisional dates of the timing of the audit.
• Records of any changes about the client since last audit e.g. changes in management structure.
• Background information about the client.
• Details of key client contacts.
• Extent of reliance expected on internal control system.