Question

Reasons for why a security audit is necessary with your recommendations for conducting such an audit:

-Potential costs (personnel, finances, etc.)

-Proposed audit timeline

-Two recommend methodologies (Audit)

Answer 1

Auditing means evaluating the effectiveness of the internal control system of the company. The audit is always required to check that the company operations are followed as per the set policies and standards.

-Potential costs (personnel, finances, etc.)

The audit is not free and it involves some cost, the cost may be in the form of auditor fees and other incidental fees.

When an audit is done this is deemed that it will bring some cost to the company. The cost may be in the form of below.

• The cost of auditor services.
• The cost of producing the documents
• The cost of the company staff that may be involved with the auditors to get the audit done.

-Proposed audit timeline

The audit is done with a plan , we can not say that audit will just happen. There is always a timeline and this is as below.

• Assignment of services, this means that the auditors are hired.
• Introduction of the auditors with the finance team .
• Start of audit, this means beginning with reviewing the books and collection of information.
• Prepare the audit report
• Implementing the audit report view, this can be positive and adverse also.

-Two recommend methodologies (Audit)

The audit can be done with two methodologies

• Complete audit, this means that all the source documents are checked.
• Sample audit, this means that only sample of transactions from a group of transactions are checked.