Engagement Work Program

• What does performance Standard 2240 “Engagement Work Program” state?

  Internal auditors must develop and document work programs that achieve the engagement objectives.
• Implementation Standard 2240.A1 - Work programs must include the procedures for identifying, analysing, evaluating, and documenting information during the engagement. The work program must be approved prior to its implementation, and any adjustments approved promptly.
• What is the IPPF glossary for an engagement work program?

  A document that lists the procedures to be followed during an engagement, designed to achieve the engagement plan.
• Prior to developing the work program, auditors may need to consider?

  • Appropriate sample size for testing and methodologies.
  • Risk register or risk matrix and how it applies to the development of the work program.
  • Scope.
  • How the engagement objectives will be achieved.
  • Available resources.
  • Judgments and conclusions made during the engagement’s planning phase.
• Internal auditors must determine which tests or audit steps are necessary to 1) assess the risks and 2) test the existing controls in the area. The auditor must ensure that the tests are specific enough to avoid scope creep.
• What does a well-crafted engagement work program do?

  • Clear audit objectives.
  • Provides a list of procedures to be performed.
  • facilitates an understanding of the audited area.
  • Furnishes evidence that the work is adequately planned.
  • Provides a record for audit management review.
  • Provides assurances that all significant risks have received adequate consideration.
  • Assists in controlling work and assignment responsibilities.
  • Gives order and coherence to the audit.
  • Conclusions respond to audit objectives.
• Implementation standard 2240.C1 - Work programs for consulting engagements may vary in form and content depending upon the nature of the engagement.
• Each engagement procedure should be designed to test a particular control that addresses risk. A procedure may be applicable to the internal audit as a whole, but if it is applied erroneously to an objective, the result will be irrelevant.
• What are the good attributes of engagement work procedures?

  Reliable, relevant, accurate, timely, and complete