I was emailed yesterday a simple question: what area would you focus your attention on if you could only do one audit this year
Materiality thresholds are easy to cross, often signicant elements of judgment involved in applying accounting standards, easy area for fraud to have a major impact.
The controls are hard to document and test and implementation isn't easy, see this for guidance--Treasury
or piece on 'Follow the Money Trail'
I spent four hours on this site
Audit Reference Center
, internal auditor dream.
Our audit team is pushing rally hrd to keep the level of usefulness high when we write our recomendations. We obviously can't blur the line into internal consulting--just not worth the implications. we can, however, be more prescriptive when offering guidance.
Our audit commitee is panicked about us focusing too much attention on Sarbanes Oxley 404 compliance. we're freeing up our time to do' all the other things IA has to do'--as my audit commitee chair said last week.