The initial survey phase of an audit process serves as a crucial step for auditors to gather information and plan subsequent audit activities. By understanding the information needs of potential report users, auditors can define the audit objectives, scope, and methodology to ensure meaningful outcomes.
Key Insights
- Surveys help auditors define objectives, select scope and methodology, and decide on the feasibility of proceeding with an audit.
- Identifying user information needs involves understanding who the report is for, the issues of interest, and the potential actions users might take based on the findings.
- Common methods for collecting survey information include discussions with management, interviews, physical observations, and reviews of existing reports and audits.
This lesson is a preview from our Government Auditor Level I Certificate Program. Enroll in a course for detailed lessons, live instructor support, and project-based training.
The survey phase is a preliminary step in the audit process designed to gather information without detailed verification. Its purpose is to support planning and determine whether a full audit should proceed. The survey serves as the foundation for developing an effective audit plan.
Typically, a survey begins with a preselected subject. A tentative issue or core performance aspect may already have been identified through requests, risk assessments, or auditor selection. The survey helps refine and validate those initial assumptions.
Purpose of the Survey
The general purpose of the survey is to obtain the information necessary to define the audit objectives, determine the appropriate scope and methodology, and reach a decision on whether to proceed with the audit. Beginning with provisional objectives helps focus the survey and ensures that relevant information is collected.
Identifying User Information Needs
Defining audit objectives requires understanding the needs of the intended users of the audit report. During the survey, auditors should answer four key questions:
- Who is the primary customer or intended recipient of the audit report?
- What issue is the customer interested in?
- What does the customer need or want to know about that issue?
- What action is the customer likely to take based on the information provided?
Clarifying these questions ensures that the audit is designed to produce useful and actionable information.
Guidance for Conducting the Survey
Auditors may begin the survey with substantial knowledge of the selected subject or with very limited familiarity. The type and extent of information gathered will depend on what is needed to support sound planning decisions. Individual audit organizations typically establish policies and procedures governing how surveys are conducted.
Common Information Needs During a Survey
The following areas are commonly addressed during the survey phase:
- Identify the intended recipients of the audit report and confirm their interests.
- Affirm or refine the issues identified during audit selection.
- Identify provisional issues if none were previously defined.
- Identify potential criteria that will be used to evaluate performance.
- Determine the availability and reliability of data sources.
- Review findings and recommendations from prior audits or attestation engagements that may affect the proposed audit.
- Obtain background information on the program, function, or activity, including funding, mission, operational methods, performance goals, and performance measures.
- Identify relevant compliance requirements.
- Remain alert to indicators of potential fraud risk.
- Identify provisional internal controls that may warrant further examination, particularly in areas involving high risk or process evaluation.
Methods for Obtaining Survey Information
Survey information can be gathered through a variety of techniques, including:
- Discussions with senior management.
- Interviews with program employees and managers.
- Physical observation of operations or processes.
- Review of management documents such as budgets, strategic plans, and performance reports.
- Review of prior studies and audit reports, including those issued by oversight bodies.
- Transaction walkthroughs that trace selected activities from beginning to end to understand process flow and internal controls.
Transaction walkthroughs may include documenting processes visually to better understand how activities move through the organization and where risks may exist.
