Building Your Audit Universe
Create and maintain a comprehensive audit universe for systematic audit coverage
An Audit Universe is a comprehensive inventory of all auditable entities, processes, and systems within your organization. It ensures systematic audit coverage and effective resource planning.
🗂️ Step 1: Inventory Auditable Units
Document all potential audit areas including:
- Business processes (procurement, payroll, inventory)
- IT systems and applications
- Geographic locations and business units
- Third-party relationships and vendors
- Projects and initiatives
⚖️ Step 2: Assign Risk Ratings
Evaluate each item based on inherent risk factors, control maturity, and residual risk. Update ratings periodically to reflect changes in the risk environment.
🔄 Step 3: Maintain and Update
Keep your audit universe current by incorporating organizational changes, new systems, restructuring, and emerging risk areas. Review annually as part of the audit planning cycle.
💡 SmartHubs Tip
Use SmartHubs to maintain a dynamic audit universe with automated risk scoring, coverage tracking, and integration with your annual audit planning process.