Para 3.20.5 — MSO (Audit)
Original Rule Text
3.20.5 The main stages of System Audit are
(i) organisational analysis;
(ii) analysis of system of authorisation and recording;
(iii) analysis of system of accounting;
(iv) examination of the system of internal control;
(v) evaluation of the standards of quality and performance;
(vi) examination of the adequacy of internal audit; and
(vii) review and evaluation of the system as a whole. The manner in which these processes are applied in the context of a government entity is indicated in the following paragraphs.
# Organisational analysis
What This Means
Systems Audit has seven main stages: (1) analyzing the organizational structure, (2) reviewing authorization and recording systems, (3) evaluating the accounting system, (4) examining internal controls, (5) assessing quality and performance standards, (6) checking the adequacy of internal audit, and (7) an overall review and evaluation of the entire system. The subsequent paragraphs explain how each of these stages applies to a government entity.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Seven distinct stages form the framework of Systems Audit
- 2Starts with organizational analysis and ends with overall system evaluation
- 3Covers authorization, accounting, internal controls, quality standards, and internal audit
- 4Each stage is adapted to the government context in the following paragraphs
Practical Example
An audit team planning a Systems Audit of a government department creates a work plan covering all seven stages. Week 1 focuses on organizational analysis and reviewing the org chart. Week 2 examines authorization and recording procedures. Week 3 covers accounting systems. Weeks 4-5 address internal controls, quality standards, and internal audit review. Week 6 consolidates all findings into an overall evaluation of the system.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Must all seven stages be covered in every Systems Audit?▼
What is the difference between internal control examination and internal audit examination?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.