Speaker 1: Hello, audit enthusiasts, welcome to the Internal Auditor, a YouTube channel where we delve deep into the world of internal auditing. Whether you're an aspiring auditor or just curious about the process, you're in for a treat. In this video, we'll walk you through the intricate steps involved in conducting internal audits, providing you with an in-depth understanding of this crucial function. We'll be referencing the International Professional Practices Framework, IPPF, standards every step of the way. So, let's get started. Our journey begins with step one, defining the audit objectives, and we're guided by IPPF standard 2200 Engagement Planning. This standard highlights the importance of setting clear objectives, aligning the audit scope, and establishing criteria for a successful audit. These objectives set the tone for your entire audit. Are you aiming to evaluate financial controls, assess compliance with industry regulations, enhance operational efficiency, or perhaps achieve a combination of these goals? It's imperative to establish clear, measurable objectives at the outset. Moving on to step two, planning the audit, IPPF standard 2200 continues to be our compass. This phase involves crafting a meticulous audit plan. You'll need to determine the audit scope, gather pertinent documentation, and identify key stakeholders and team members. Crafting a well-structured audit plan will be your roadmap throughout the process. Step three involves understanding the organization's processes, guided by IPPF standard 2220 Engagement Scope. The scope of the engagement must include consideration of relevant systems, records, personnel, and physical properties, including those under the control of third parties. You must comprehend how these processes are designed to work before identifying any deviations or areas that require improvement. This step necessitates conducting interviews with employees, meticulously reviewing policies and procedures, and gaining a comprehensive overview of daily operations. Step four is all about risk assessment, in line with IPPF standard 2210 Engagement Risk. It entails identifying potential risks and evaluating their potential impact on the organization. Internal auditors must conduct a preliminary assessment of the risks relevant to the activity under review. By conducting a thorough risk assessment, you'll be equipped to prioritize your audit focus and allocate resources effectively. Step five is where we roll up our sleeves and get into the nitty-gritty. Conducting testing adheres to IPPF standard 2300 Performing the Engagement. This can involve various methods, including sample testing of transactions, scrutinizing financial statements, or assessing compliance with established policies. The choice of testing methods depends on your audit objectives. Moving to step six, analyzing findings, which ties into IPPF standard 2320 Analysis and Evaluation. This is where you consolidate all the data you've collected and look for patterns, anomalies, or areas of concern. The quality of your analysis forms the bedrock of your audit report. Step seven is communicating the results, which corresponds to IPPF standard 2400 Communicating Results. After analyzing your findings, you must communicate these results to the organization's management. Your communication should be clear, concise, and impartial. Professionalism is paramount throughout this stage. Step eight, developing recommendations, is rooted in IPPF standard 2410 Criteria for Communicating. These recommendations should be practical, actionable steps that the organization can take to address the identified issues or enhance existing processes. Your recommendations should be firmly grounded in the evidence uncovered during the audit. Auditing isn't just about finding problems, it's about ensuring they're resolved. In step nine, monitoring progress, we refer to IPPF standard 2500 Monitoring Progress. As the internal auditor, you'll need to follow up with the organization to track the implementation of your recommended actions and verify their effectiveness. Finally, in step 10, you'll need to finalize the audit report. This comprehensive document should include a clear summary of your audit objectives, findings, recommendations, and any responses or action plans from the organization. The report should be meticulously structured and easily comprehensible. That wraps up our comprehensive guide on conducting internal audits. Remember, internal auditing is an invaluable function that empowers organizations to operate efficiently, mitigate risks, and continually improve. If you found this video informative and detailed, please give it a thumbs up and subscribe for more in-depth content. Thanks for joining us today, and as always, if you have any questions or want to share your own auditing experiences, feel free to leave a comment below. Let's keep the conversation going. Until next time, keep auditing, keep learning, and keep striving for excellence.