Appendix 7A: Case Study—Developing a Multi-year, Risk-based Internal Audit Plan for a Retail Chain
Large Audits
Table: Audit objectives for large audit engagements for the year 2024.
| Engagement Title |
Audit Objective Description |
| Cybersecurity Management Audit |
This audit aims to evaluate the effectiveness of Buy and Large’s cybersecurity measures, including assessing the robustness of IT security policies, controls, and incident response plans. The audit will scrutinize the company’s defences against external and internal threats, penetration testing results, and adherence to industry best practices and compliance requirements. The audit will also assess training and awareness programs to ensure all personnel are informed about security protocols. |
| Regulatory Compliance Framework Audit |
This audit aims to assess the effectiveness of Buy and Large’s compliance framework in ensuring adherence to various local and regional regulatory requirements across its operations. The audit will review the processes for monitoring changes in legislation, how these changes are communicated within the company, and integrating these laws into daily operations. Special attention will be given to data protection laws, employee safety regulations, and environmental standards. |
Medium Audits
Table: Audit objectives for medium-sized audit engagements for the year 2024.
| Engagement Title |
Audit Objective Description |
| Financial Reporting Systems Audit |
The audit will evaluate the accuracy and reliability of financial reporting systems at Buy and Large. It will focus on integrating and consolidating transaction data across various systems to ensure that financial statements are accurate and timely. The audit will also examine controls over the recording of transactions and the preparation of financial statements to detect any potential misstatements or errors. |
| Market Dynamics and Adaptability Audit |
This audit will assess how well Buy and Large responds to changing market conditions, especially its dependence on specific marketing channels. The objective is to evaluate the flexibility of marketing strategies and the effectiveness of the existing risk management strategies to handle shifts in consumer behaviour and technology. The audit will recommend diversification strategies and improvements in data analytics to better predict and react to market trends. |
| Economic Impact Assessment |
This audit aims to assess the company’s resilience to economic downturns and its strategies to mitigate impacts on profitability. This will include reviewing cost control measures, inventory management, and pricing strategies to ensure that Buy and Large can maintain profitability during varying economic conditions. Additionally, the audit will evaluate the effectiveness of business continuity plans in coping with financial crises. |
Small Audits
Table: Audit objectives for small audit engagements for the year 2024.
| Engagement Title |
Audit Objective Description |
| IT Infrastructure Review |
This engagement will assess the adequacy and effectiveness of the current IT infrastructure to support operational and strategic goals. The audit will focus on the IT hardware, software, and network systems to ensure they are up-to-date, secure, and scalable to meet future business requirements. Special attention will be given to disaster recovery planning and data redundancy. |
| Supply Chain Efficiency Review |
The audit will focus on evaluating the efficiency and reliability of the supply chain at Buy and Large, particularly the decentralized purchasing and inventory management practices. It will assess whether these practices align with corporate goals and lead to optimal stock levels and product availability across all stores. |
| Privacy Policy Implementation Review |
This audit will assess the implementation and effectiveness of privacy policies that protect customer and employee data. It will review compliance with data protection regulations, employee training on data privacy, and security measures to prevent data breaches |
Consulting Engagements
Table: Objectives for consulting engagements for the year 2024.
| Engagement Title |
Description of the Consulting Engagement Objective |
| Cybersecurity Consulting Project |
This project will provide expert advice on enhancing cybersecurity measures based on the findings from the cybersecurity management audit. It will involve working with IT and security teams to develop a comprehensive action plan to address vulnerabilities, update security policies, and improve incident response capabilities. |
| Supply Chain Strategy Consulting |
This consulting project aims to enhance the strategic alignment of the supply chain with business objectives. It will involve analyzing current supply chain strategies, identifying inefficiencies, and recommending improvements to procurement processes, vendor management, and inventory control. The goal is to optimize the supply chain for better responsiveness to market changes and overall efficiency. |
