FAM

Financial Audit Manual

DAGP Strategic Audit Plans
 DAGP produces a multi-year strategic plan for DAGP audit activities. The audits
included in the strategic plan will include:
 Mandatory and centrally led
These are audits required by DAGP’s mandate to be performed each year, where the work performed by an
individual directorate is part of a larger audit. An example of such an audit is the annual audit of the financial
statements of the Federation.
 
 Not mandatory and centrally led
These are audits where DAGP’s mandate does not require that they be performed each year, and the work
performed by the directorate is part of a larger audit exercise. An example of this type of audit could be a
government-wide audit of contracting.
 
 Mandatory and not centrally led
Those audits that are required by DAGP’s mandate to be performed each year, where the work is not part of
a larger audit. An example of such an audit is the annual audit of the financial statements of a specific
commercial entity or a foreign-aided project for which the directorate is required to issue an audit opinion.
The annual planning process
Each directorate prepares an annual audit plan for its audit activities which includes the audit activities required by
the Auditor-General, plus the optional audits planned by the directorate, and submits it to the Auditor-General for
approval

The annual audit plans contain:

a) A summary of the directorate’s mandate.

b) A status report on the current year indicating the extent to which the planned coverage for the current year is being achieved.  
c) A summary of the audits that the directorate intends to perform in the following year.

d) Details with respect to each of the planned audits for the following year
These details include, for each audit: 
• The revenue and expenditure to be audited
• The person days required
• The staff members to be assigned to the audit (and any shortfall in the staffing), etc.
 
e) A summary of the unallocated resources available within the directorate or the audit work for which staff is not available.
 The audit cycle contains five basic phases

 a) Planning
 c) Fieldwork (Execution)
 d) Evaluation
 e) Reporting
 f) Follow-up
Audit Cycle for Individual Audits Establish audit objectives and scopes

Understand the entity's business

A
U Assess materiality, planned precision,
D and audit risk
I
T
Understand the entity's internal control structure

P
L
A Determine components
N
N
I Determine financial audit and compliance with authority objectives and
N error/irregularity conditions
G

Assess inherent and control risk

Determine mix of tests of internal control, analytical procedures and

substantive tests of details

Develop audit programmes

ACTIVITY AND
RESOURCE
PLANNING
Establish resource requirements and timing

FIELDWORK Execute audit programmes

EVALUATION Conclude on results of work

REPORTING Issue reports

FOLLOW UP Follow up matters in reports

THANK YOU