Submitted on 04-29-11 8:37 am Message: My company is merging with another similar company. My company's internal audit function typically conducts audits of entire processes or business units which usually consume 1000-2000 hours. My counterpart's IA department conducts many more, smaller audits or parts of processes or projects bu is able to touch more parts of the business annually.
Any thoughts on whether either approach is preferred or better?
I would sugget that you use risk assessment and staffing in determining your audit approach.
In the past, we usually select one or two major processess or business units for comprehensive audit and parts of other processes for review in our annual audit paln. Multiple year risk assessment is the key.
Business priorities are another issue. Is the firm considering making a major technology investment in a process or trying to spin off a division?
Other factors influencing an audit approach are your industry and business model.