Responding to external auditors

About This Resource
External auditors approached me to assess whether they can rely in the work performed by internal audit
Type of Resource
Resource Files

Login or create free account to download resource files.

Ready to Get Involved?

Why should everyone reinvent the wheel? Let’s share our internal audit resources so we can all add more value to our organizations.

To share one of your resources with the community, either use the upload function under Share Resources or email us at resources [at] auditopia [dot] com.

We know confidentiality is important. Please do not share any sensitive content, let’s focus on methodology only. Note that only your first name will be visible to the community when uploading a resource. You can also change this display name under Dashboard and choose a completely anonymous alias if you prefer.

Shared By: Adri Arendse
Date: June 22, 2021
Share this resource
Share on linkedin
Share on twitter
Share on facebook
Report this resource

Reported resources will be reviewed by us. Report this resource to let us know if this resource violates Auditopia's Terms of Use.

3 thoughts on “Responding to external auditors”

  1. Diego

    Hi Adri,

    Unsure, if you are currently working in an internal audit department and if your department does the SOX test work for management. Because this request is very common and it gives the internal audit department an opportunity to get credit for their work and possibly lower external audit fees. I’ve seem many external audit firms rely on internal audits test work for primarily low risk control areas. Perhaps you can select a low risk business process area as a trial run and share your documentation with them. This way they can assess and provide feedback on additional attributes that they would like in the documentation going forward. Hope this helps! Thanks

  2. Carley
    Carley Ferguson

    Hello Adri – I agree with Diego, but you may want to start a bit further back. First I would meet with them and understand their expectations in regards to the staff and work assigned. Are they planning on relying on work you already perform for management or requesting direct assist hours where you are assigned specific tasks from their audit program to complete? They most likely will want to evaluate your staff in terms of experience and training, so be prepared to provide resumes/CVs and evidence of continuing education courses. Also, what is the risk/reward proposition for your team to adjust their audit plan and apply resources to benefit the external audit. This can be a good way for the internal audit team to reduce the impact of external audit on the business, but there needs to be clear understanding of the goals and requirements in advance.

  3. Adri

    Thank you Diego and Carley.
    Your responses are just in time as I have my meeting with the external auditors today.
    I am the chief internal auditor of a listed group.
    I prepared an overview of the internal audit team in terms of qualifications, experience and responsibilities. I alps prepared the areas of each company we covered stating the areas which tested adequate, improvement was recommended as well as the findings. I will also provide them with the audit reports.
    I will know by today exactly what they require and intend on relying and will incorporate your comments above.
    Thank you very very much!

Leave a Comment

Report This Resource

    Create Free Account

    Contact us