Question

How might an organisation decide the frequency of auditing activities?

Answer 1

Ans: Audits can be performed monthly, quarterly or twice a year or omce a year. Before defining an audit frequency , it is important to understand the criteria which should be considered as not all process es should be considred on the same time. consideration shoud be given to the cost, benefit, and cadence of the proposed frequency of the process being audited. The nature of some continuous audit objectives , such as deterrence or prevention , may also determine frequency and variation. Frequency of an audit can be based on the following factors i.e.

• Complexity of the process:Processes invlving high risks of mistatementor deficiences should be audited on a more frequent basis. Processes with low risk can be audited just once a year or every other year.
• Maturity of the process:Newly incoporated processes should be audited more frequently as compared to well established processes that run efficiently.
• Past experience:Processes that have faced frequent defieciencies or non conformities in past , shoud be audited on a more frequent basis , such as quarterly or twice a year.
• Other factors: Budget of the organization or regulatort requirements shoud also be considered while determining the frequency of the audit.