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Unformatted text preview: OFFICE OF TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION DATE: October 1, 2010 CHAPTER 300 - AUDITING (300)-60 Planning and Conducting Audits 60.1 Overview. Quality Office of Audit (OA) products and services result from the consistent application of sound auditing techniques that comply with generally accepted government auditing standards. All OA projects and audits are primarily divided into three parts: planning, fieldwork, and reporting. This section covers the planning and fieldwork portions of audits, while Section (300)-90 covers reporting audit results. The two primary drivers of the OA program are: Professional standards : These include the Government Accountability Offices (GAO) generally accepted Government Auditing Standards (GAGAS), the Council of Inspectors General on Integrity and Efficiency Standards , and the American Institute of Certified Public Accountants (AICPA) Statements (for financial statement audits) OAs outcome measures : These outcome measures maximize impact on tax administration and emphasize achievements in the areas of significance to the Internal Revenue Service (IRS). The planning and fieldwork standards/procedures outlined in this section apply to all types of reviews, except where otherwise noted in their respective sections. 60.2 Planning Audits . Auditors should document the planning process for each audit. This process includes the following: Establishing audit objectives and the scope of work. Conducting research to obtain background information about the activities to be audited. Performing an on-site survey, when needed, to become familiar with the activities and controls to be audited, to identify areas for audit emphasis, and to invite auditees comments and suggestions. Assessing internal controls (also known as conducting a micro risk assessment). Exhibit (300)-60.1 provides an example of an Internal Control Assessment template. Also see GAGAS paragraphs 7.16 and 7.23-7.27 for guidance on information systems and controls as it relates to assessing audit risk and planning the audit. All audits must document a risk assessment of the internal controls dependent on information systems processing. Operations Manual 1 Chapter 300 OFFICE OF TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION DATE: October 1, 2010 Evaluating the need for support such as Information Services assistance in extracting computer-processed data or contracting out the use of spets. Preparing all elements of the audit plan and obtaining approval. Communicating with management before starting work and determining how, when, and to whom audit results will be communicated. Professional auditing standards require that auditors design a methodology to provide sufficient, competent, and relevant evidence to achieve the objectives of the audit. See GAGAS paragraphs 7.68-7.61 for additional guidance on an overall assessment and sufficiency of collective audit evidence. Auditors should perform and document an...
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This note was uploaded on 03/31/2012 for the course TAX 4001 taught by Professor Robertmcgee during the Spring '09 term at FIU.
- Spring '09