Institute of Cost Accountants issues guidance on internal audit of Engineering Industry
The Institute of Cost Accountants of India (ICAI) has recently issued a guidance note on internal audit of Engineering industry which provides elaborated guidance to auditors on the aspects to be considered while performing internal audit. The document provides elaborated guidance on the following aspects:-
✓ Introduction to Internal Audit
✓ Documentation and Working papers
✓ Planning an Internal Audit and Audit Programme
✓ Audit Sampling
✓ Audit Evidence
✓ Analytical Procedure
✓ Accounting System & Internal Control
✓ Control and risk assessment
✓ Internal Audit in ERP Environment and System Audit
✓ Relying on External Opinion and Reference of Auditor Expert
✓ Audit Conclusion and Corrective measures
✓ Report writing and Auditor Report
✓ Introduction to Engineering Industry
✓ Applicable Government Policies and Rules
✓ Legal and Regulatory Framework
✓ Peculiarities of Engineering Industries
✓ Special transactions peculiar to the industry
✓ Activities/ Services of the industry
✓ Audit of Operational Activities
✓ Audit of Special Areas with reference to peculiar transactions
✓ Audit of Functional Areas
✓ Maintenance of Cost records and Cost audit specific to the industry
✓ Audit follow up
✓ Check Lists