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Mock Audits

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It is my feeling that teaching auditing from textbooks can only help to achieve a fundamental knowledge of the audit process. I believe that IAE classes, imbedding mock audits where students conduct audits, can significantly enhance audit understanding and expectations and sustain the student’s attention throughout the learning process.  Mock audits are very effective by using role playing to teach auditing, learning how to prepare for an audit and in achieving audit readiness. 

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Mock audits are extremely rewarding after the students are familiar with the audit process and control concepts and techniques. It is beneficial that they first take Auditing Information Systems or Auditing Financial Statements.

 

Mock audits simulate actual audits with audit role playing by the students. The students will experience the challenges and confrontations between auditors and audit clients from both perspectives, by each taking a turn at both roles.

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The training supplied to students when they role play the part of internal auditor involves teaching them how to:

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• Prepare and send out an audit announcement letter  

• Pull together an effective audit team 

• Ask for initial and subsequent documentation

• Conduct interviews

• Understand which questions to ask first 

• Evaluate evidence

• Recognize which questions are appropriate for follow-up questions

• Become aware of those responses that should be challenged

• Interface with the audit client and react to challenges when confronted by the audit clients

• Conduct status meetings

• Write an audit report that includes substantive audit findings

• Evaluate risks and exposures

• Formulate a final audit opinion

• Present a final report

• Recognize which issues need to be followed for closure

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The training supplied to students when they play the role of an audit client involves teaching them: 

                   

• How to respond to initial audit announcement letters

• The “do's and don’ts” of responding to audit requests for documentation

• How to conduct themselves during an interview

• When to challenge an auditor

• When and how to escalate disagreements

• How to review audit findings

• When to ask the auditors to add clarifying information

• What information to supply in response to to auditors requests 

• How to review final reports

• How to conduct risk analysis

• When to accept the audit report

• How to establish corrective action plans for issue resolution

• How to track issue resolution until closure

 

Mock audits have been very well received by all audiences. The students, as they role play,  get a feel for what it is like to conduct an audit or be audited.