Telecommunication Audit - Preliminary Audit Program
[Organization] Telecommunications - Billing September 1, 199X
to August 31, 199X.
- To determine compliance with applicable policies, procedures,
- To test the integrity and reliability of interfaces with financial
reporting system (FRS) and budget reporting system (BRS).
- To determine the existence of and adherence to internal controls
over the billing and related processes.
- To determine the reliability of financial and operational
- To determine the efficiency, economy, and effectiveness of
operations related to the scope of the audit.
- Review and update permanent file.
- Review current Federal, State, and University guidelines applicable
- Inquire of and review any reports or audits or other reviews
- Obtain an understanding of auditee's department/function:
- obtain organization chart and/or job descriptions
- obtain any statements of mission, goals, or operational objectives
- interview key departmental personnel to obtain useful information
(necessary for documenting department's profile), and
- inquire about changes in past 3 years in auditee's program,
organization, procedures, and level of technology.
- Review department procedures manual(s).
- Obtain or develop department financial information.
- Determine audit objectives and scope and review with the Director.
- Determine which audit programs and ICQ's should be used and
whether modification is needed. Flowchart unique departmental
- Review level of automation and accessibility of computer files
to determine if specific computer tools are needed.
- Prepare engagement letter and schedule an entrance conference.
Hold an entrance conference with the head of the department to
be audited and designated attendees:
- go over audit life cycle and discuss audit process;
- discuss the tentative scope of the audit;
- discuss audit objectives; and,
- inquire if there are specific areas of management concern.
- Based on information obtained from the preliminary survey
and entrance conference, complete the department audit program:
- finalize scope and objectives;
- revise existing audit programs and ICQ's as necessary;
- add or delete additional steps to audit programs; and,
- prepare an audit time budget.
- Obtain approval of the audit program and budget from the Director
prior to commencing fieldwork.
- Request automated reports from DP personnel as needed (or
use available data retrieval tools to extract automated reports
- When using audit programs that require confirmation letters,
remember to send them out as early as possible to avoid delaying
the audit project.
- Review, as necessary, audit sampling methods with the Director.
- Perform audit fieldwork using separate, generic programs as
- Remember to:
- review internal control throughout the audit;
- devise, perform, and document any additional steps considered
necessary based on the results of the review of internal controls;
add these steps to the audit program and obtain approval;
- document all findings on Point Disposition Sheets and review
with auditee; note auditee comments;
- obtain approval from the Director for any modifications needed
to the time budget and audit scope as a result of major problems
encountered during fieldwork; if significant finding needs immediate
management attention, discuss with the Director.
- Perform billing and accounts receivable audit program for
- Select a random sample of workorders to insure proper documentation
exists for issuing authorization codes and activation / deactivation
of previously issued Telecomm codes.
- Select a random sample of credit card numbers from the Telecomm
data base and trace to source document to ensure the validity
of the numbers.
- Complete the system control ICQ.
- Review the appropriateness of the levels of accessibility
to Telecomm's Prime Computer system and System 85 Switch via password
- Verify that FRS and BRS programmers at [Organization] cannot
write to the billing tapes by determining the security access
to their high level qualifiers.
- Assess the physical security of the premise by comparing police
report to premise. Also consider physical access to computer hardware
- Verify that there are clear and up-to-date written procedures
for each operation.
- Determine if the department and/or the University meets established
goals and objectives by reviewing management reports and other
measures of achievement and productivity.
- Review reconciliations and other tracking to determine if
the interfaces between the systems are reliable.
- Clear any open points.
- Title, index, initial, and date workpapers.
- Summarize the results of all tests performed in the applicable
workpapers. Include calculation of actual error rate for each
attribute tested. Determine if the actual error rate is acceptable
and document your conclusion.
- Prepare audit memo(s) outlining audit work performed.
- Develop audit findings and recommendations when applicable.
- Submit audit workpapers and draft report to the Director for
- Clear review notes. Go over the review notes with the Director
to ensure that all points are cleared.
- Distribute draft audit report. Obtain and review responses.
Note your receipt of the responses. Issue final audit report with
- File report and workpapers - Audit Control Sheet.
- Verify the scope percentage breakdown was accurate and notate
to the Director the "significant" recommendations.
- Perform follow-up in approximately six months following the
date of final report distribution.
- Close the file.