Module 4 - Introduction to Performance Audit_4A

Supervision
66) The SAI shall ensure that the work of the audit staff at each level and audit phase
is properly supervised during the audit process.
67) Audit supervision involves providing sufficient guidance and direction to the audit
team assigned to the audit. The auditor who supervises the audit would be
expected to have competence and knowledge in audit methodologies; planning
and monitoring work; project management; strategic thinking; foresight and
problem solving. The level of supervision provided by the auditor may vary
depending upon the proficiency and experience of the audit team and the
complexity of the subject matter of the audit. 32
It should be noted that a team member designated to supervise an engagement should not
have responsibilities for that engagement to avoid a conflict of interest. This presents
practical difficulties in small audit teams.
There are two aspects to supervision:
Overseeing individuals.
Overseeing their work.
The supervisor assigns tasks, confirms expectations, monitors performance, provides
feedback and encouragement, intervenes where necessary, directs, advises, and coaches,
offers on-the-job training, and acknowledges and celebrates achievements. Supervisors also
provide feedback to higher levels of authority, up to the head of internal audit or the SAI.
The engagement plan provides a suitable framework within which the supervisor guides and
supports auditors. The supervisory work may begin with assisting with the development of
the plan which thereafter informs not only the performance of the audit but also the
discharge of supervision. The engagement plan will typically identify the key tasks to be
completed, including the following:
Guiding the survey phase to obtain knowledge to formulate objectives.
Formulating clear audit objectives that set forth what the audit is expected to
accomplish.
Coordinating with other auditors when appropriate, including work that is planned or
already completed.
Selecting a valid and sound scope and methodology for accomplishing the objectives
and obtaining sufficient data without wasting resources in acquiring unneeded data.
Establishing the type and amount of resources and staff skills and knowledge, and
the use of any consultants and experts.
Segmenting the work where necessary to clearly identify responsibility of assigned
staff.
Identifying audit criteria, when criteria is to be applied in the audit.
Selecting a strategy and approach for communicating audit results to users timely
and effectively.
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ISSAI 3000 Performance Audit Standard, INTOSAI, 2019.
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