Mon, Oct 23, 2023

Audit memos are powerful tools for documenting an organization's audit plan during the initial phases of the audit process. Use KnowledgeLeader's customizable audit memo samples to communicate audit approach and scope as well as enhance audit efficiency.

We offer over 50 memos that offer a wide range of support. Some of KnowledgeLeader's most popular memos are listed below. For a full list of available items, visit our Memos content area.

AUDIT PLANNING MEMO SAMPLES

Audit Planning Memo
This tool provides three sample planning memos, which serve as a report of an internal audit function’s high-level assessment of the company’s audit planning process and outlines what should be included in an audit planning memorandum. In these memos, internal audit evaluated the effectiveness of any existing controls that, based on sample testing, have consistently been in operation during the audit sample period. 

Management Response to Internal Audit Reports Memo
Use the important points included in this memo to draft management responses to audit observations. It focuses on the key considerations of a well-written management response, explains the S.M.A.R.T. procedure, answers frequently asked questions and provides additional resources. At the end of each audit, upon issuance of the draft report, management of the audited unit is responsible for developing and implementing an action plan that will remediate any risks associated with the observations noted during the audit. 

INTERNAL AUDIT MEMO SAMPLES

Internal Audit Engagement Memo
This internal audit engagement memo informs an auditee of an upcoming audit and includes the objectives of the audit, proposed timetable and audit team members. In this sample, internal audit solicits a meeting with the department head to discuss audit objectives and seek input. The team will audit results and potential recommendations of the audited area with management before scheduling an exit conference with the department head. 

Audit Report Rating Memo
The purpose of rating audit findings is to provide management with a clear picture of the significance of control deficiencies as an aid to prioritize corrective actions. This memo outlines a system to use when rating individual audit findings and overall audit reports. It is designed to be referenced by all members of the internal audit department when reviewing findings that are noted during an audit. 

ACCOUNTING MEMO SAMPLES

Accounting Policies and Procedures Memo
This sample memo serves as a report of an internal audit function’s high-level assessment of the company’s existing accounting policies and procedures (P&Ps). The objectives of the review were to evaluate the completeness and adequacy of the company’s existing accounting P&Ps and identify any gaps per applicable regulations and best practices/benchmarks, evaluate the organization's adherence to existing accounting P&Ps and the existence of processes/procedures in place to facilitate adherence or performance, and more. 

Procurement Card Internal Audit Planning Memo
This sample procurement card internal audit planning memorandum documents the audit approach and scope. The purpose of the audit is to assess the adequacy of internal controls, the level of compliance with established policies and procedures, and the effectiveness and efficiency of business operations. This memorandum should be completed as part of the initial audit planning process and is meant to enhance audit efficiency. 

COMPLIANCE MEMO SAMPLES

Data Breach Notification Memo
This memo notifies an individual regarding the possibility of a personal information breach and explains the steps taken by a company to protect against identity theft or abuse of information. In this sample, the company has arranged for a credit monitoring product and is offering to assume the cost of one year of credit monitoring for the customer, with an attachment to the letter containing details on the service.

SOX Year-End Update Testing Memo
This memo defines the process a company uses to update testing of internal controls for Sarbanes-Oxley compliance purposes near or at the year-end. Since all testing of controls cannot be performed at year-end, management must perform update testing near year-end in order to verify that controls tested earlier in the year are still operating effectively.  The process includes determining which controls to select for update testing as well as the type of update testing to perform.

INTERNAL CONTROLS MEMO SAMPLES

Data Governance Audit Scoping Memo
This sample memo serves as a report of an internal audit function’s high-level assessment of the company’s data governance function. In this sample, internal audit assessed the data integrity and inconsistencies that have arisen from its merger. This tool can be used for reviewing the effectiveness of the function and confirming that the scope and direction of the group is aligned with industry best practices. 

Internal Control Audit Instructions Memo
This memo documents instructions for reviewing and testing a company's internal control environment, which consists of the following cycles: financial reporting, tuition, purchases and payables, development, auxiliary, information technology, platform security, security management, end-user computing, and systems development lifecycle.

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