While auditing the procurement processes at DEF Industries, the Internal Auditor, Ms. Pranati, follows the documented audit work plan, which emphasizes contract compliance. Midway through the audit, she discovers discrep

Internal Auditor Ms. Pranati, should perform audit engagement as per the documented audit work plan. However, audit plan should be modified and updated on the basis of additional knowledge and information gathered by the auditor during the course of audit to ensure audit activities are more effective and practical. Following steps should be planned and implemented performed while conducting the audit execution: Prepare detailed audit schedule comprising of key activities to be performed, meetings to be conducted, interviews to be conducted, data analytics to be done, on field verification and checks to be performed, identification and reporting of preliminary issues, conduct management discussion, management agreed action plan, audit conclusion and reporting. Internal Auditor must conduct opening meeting with key stakeholders before start of audit engagement and share details of Information and System Access required to perform the audit. Internal Auditor must obtain and perform correctness and integrity of information received. To the extent possible, Internal Auditor must obtain the information directly from the source. Perform data analytics to identify trends, outliers and initial exceptions. Select sample and perform detailed audit checks for the sample information. Detailed audit testing must be performed as per the audit work plan. Internal Auditor must ensure adequate evidences must be collected and stores in accordance to Standard on Internal Audit (SIA) 320, Internal Audit Evidence. Prepare issue sheets and identify root cause, implication and suggest remedial action plan and control to be implemented. Adequate document of the internal audit work papers needs to be ensured as per standard on Internal Audit (SIA) 330, Internal Audit Documentation