1. ASSIGNING TIME BUDGETS TO AUDITS
Summary: assigning time budgets is the important for each of every auditor, they will
be complete the project as time as budgets base, the audit manager should provide all
guidance in the assignment plan before the full audit commences. Objectives in the
assignment plan should be achieved and the audit manager review should ensure this.
Performance - time - budgets makes clear that the internal audit activity should
evaluate and contribute to the improvement of risk management, using a systematic and
disciplined by the terms of act – for assigning time and budget
Mark dates for start and completion and key stages. For larger audits, break the task
the terms of reference for the audit by audit management and disclosed to the client
Management. This occurs where the auditor becomes so engrossed in an operation that
they see themselves as an expert who has a duty to solve all problems after mastering
the system.
Time is the key factor on any audit. Setting a time budget acts as a principal control
over the assignment and is the single most important concern of audit management. A
viable audit is achieved within budget to professional audit standards and as a full
discharge of its objectives. Objectives in the assignment plan should be achieved and
the audit manager review should ensure this. Performance - time - budgets makes clear
that the internal audit activity should evaluate and contribute to the improvement of
risk management
Target dates for start and completion and key stages. For larger audits, break the task
Down into defined stages and manageable parts that may be reported on separately.
This enables the auditor to maintain a focus on the objective at hand, and report before
going on to deal with the next part.
For example, a corporate system, which has been devolved? Down to departments like
personnel, time- budgeting, or expenditure processing, may be broken down into sections
relating to each department.
Budgeted hours must be realistic and achievable. An alternative approach is more basic
and simply states (for example):
LARGE AUDIT > 4 WEEKS (Approx 28 Days)
MEDIUM-SIZED AUDIT> 2 WEEKS (Approx 14 Days)
SMALL AUDIT > 1 WEEK (Approx 07 Days)
Extensions are not encouraged as the auditor has to perform as much work as possible
during the budget hours and then move on to the next job. The adopted policy must be
explained and detailed in the audit manual since work done on one audit detracts from
work that might be done elsewhere. The extent of work done in such time frames
depends on the skill and expertise of the Individual auditor. A performance appraisal
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2. scheme rewards those who deliver quality reports within the time constraints. There are
two different views.
One seeks to perform the audit terms of reference to the full no matter how long this takes, even
if budgeted hours are extended. This normally involves extensive testing and an inability to
defer parts of the audit to a later stage.
The other view is that audit management sets a defined number of hours according to the level
of risk attached. When this budget expires the auditor must transfer to another work area, so
recognizing the risks of not dealing with the next planned audit.
The auditor becomes too closely associated with the operation, asking for more and
more time to spend on the audit. The correct position is to provide budgeted hours for
the audit and then remove the auditor from the work once this has expired unless there
are exceptional circumstances. The working file will show what work is outstanding that
may be deferred to the next audit. Auditor attachment can lead to audit saturation
where there has been too much time spent by the audit team on only one area of risk.
Auditors can be drafted in to deal with each department if a suitable programmed of
work has been prepared and explained and the work programmed requires extensive
testing and interrogation of the corporate database. Once compiled, it can be completed
by a variety of resources as time –budget on the starting point project volume
Conclusion: A practical audit is achieved within time - budget to professional audit
standards and as a full release of its objectives. The auditor will also be concerned that
compliance issues have been addressed by management and Implementation Standard
The internal auditor should consider the probability of significant errors, irregularities,
noncompliance, and other exposures when developing the engagement objectives.’
About The Author:
Mohammad Wahid Abdullah Khan (MBA, CPFA, CPIA, CFC)
Dhaka, Bangladesh
Home Page: http://wahidbd.page4.me
MOHAMMAD WAHID ABDULLAH KHAN Dhaka, Bangladesh, is a PhD Candidate in
"Criminal Psychology" as well he is “freelance Author, online columnists, Human
psychoanalyst, industrial psychotherapist, Certified Financial Consultant, & Certified
Forensic Accountant, too dynamic entrepreneur, utilize creativity leadership and
teamwork to design and execute solutions that creates customer value.
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3. Moreover Mr. Khan is CEO & Certified Consultant of” Wahid & co, Wak Business
Solutions, Wak Business Support, “Wam Associates” & leader of the” Wahid Consulting
Group”; Prior to consultancy Mr. Wahid has fulfilled more than 14 (fourteen) years
working in various fields of Business like - Accounts, Finance, Auditing (Internal &
External Audit), Project budgeting and Project costing related positions in some of the
largest group & join venture companies in Bangladesh. Which experience encouraged him
to work as a “professional consultant” from a few years,
Mr. Khan is realistic and implements his assignment within the bounds, objectives and
capabilities of the organization. His extraordinary quick understanding of strategic
options helps find direction and supports management in decision making. He has a “doer”
attitude and gets things done on the technical and functional side. As a “Consultant” Mr.
Wahid believe that his study & physiological motivation is very strong, as well my
confident level is high & my quantitative skills are well-built also he is crystal clear about
my every single goal which helped me to be a very tough contestant “Consultant” in the
business consultant arena
Professional Membership:
• Associate Member – Institute of Management Consultants Bangladesh (IMCB)
•Member- Association of Proposal Management Professionals® (APMP®)
• Member – The Next level Purchasing Association.
•Member- The Chartered Institute of Personnel and Development (CIPD)
• Member - The Professional Risk manager’s international Association (PRMIA)
• Affiliate Member- Global Association of Risk Professional (GARP)
• Member - The International Association of Risk and Compliance Professionals (IARCP)
• Lifetime Member - Dragon fire martial arts association “International” (DFMAA)
• Individual Member: License Logic LLC
• Associate Membership - The American Psychological Association (APA)
• Member - The Global Community of Information Professionals
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