Appendix 7A: Case Study—Developing a Multi-year, Risk-based Internal Audit Plan for a Retail Chain
2025 Internal Audit Plan
Large Audit
| Engagement Title | Audit Objective Description |
|---|---|
| Data Privacy Audit | This audit will evaluate the effectiveness of Buy and Large’s data privacy controls and procedures. The audit will focus on compliance with international and local data protection regulations, data storage and transmission security, and employee adherence to privacy policies. The audit will also assess the effectiveness of training programs and incident management protocols related to data breaches. |
| Financial Controls Audit | The primary objective of this audit is to assess the effectiveness of internal controls over financial reporting at Buy and Large. It will focus on key financial processes such as revenue recognition, expense management, and cash handling. The audit will evaluate the adequacy of control measures to prevent and detect financial misstatements or fraud, ensuring that financial operations are conducted according to established laws, regulations, and company policies. |
Medium Audit
| Engagement Title | Audit Objective Description |
|---|---|
| Compliance with Environmental Standards Audit | This audit will assess compliance with environmental laws and regulations, focusing on the company’s adherence to sustainability practices and waste management procedures. The audit will evaluate the effectiveness of environmental policies and training programs and whether the company meets legal requirements and industry standards for environmental protection. |
| Inventory Management Audit | This audit aims to evaluate the effectiveness of inventory management practices across Buy and Large’s retail network. The audit will focus on the accuracy of inventory records, inventory turnover efficiency, and effectiveness of restocking processes. It will also assess risk management practices related to inventory, such as protection against loss and the adequacy of insurance coverage. |
| Strategic Risk Management Audit | This audit will evaluate the effectiveness of the strategic risk management framework at Buy and Large. The objective is to assess how strategic risks are identified, assessed, and managed, particularly those related to market dynamics and economic downturns. The audit will review the integration of risk management in strategic planning and decision-making processes. |
Small Audit
| Engagement Title | Audit Objective Description |
|---|---|
| Brand Management Review | This audit will evaluate the strategies employed by Buy and Large to manage and enhance its brand reputation. The focus will be on marketing strategies, customer engagement practices, and public relations efforts. The audit will assess how these practices align with corporate objectives and values and their effectiveness in maintaining a positive brand image. |
| Legal Compliance Review | This audit aims to assess the adequacy and effectiveness of practices in place to comply with legal standards and regulations. This includes reviewing contract management, dispute resolution processes, and compliance with corporate governance norms. |
| Market Adaptability Review | This audit will assess Buy and Large’s responsiveness to market changes, focusing on the adaptability of marketing and sales strategies. The objective is to evaluate how quickly and effectively the company can adjust its approach in response to changes in consumer preferences and competitor actions. |
Consulting Engagements
| Engagement Title | Description of the Consulting Engagement Objective |
|---|---|
| Financial Systems Consulting | Based on the findings of the financial controls audit, this consulting project will assist in refining financial systems to enhance control mechanisms, improve reporting accuracy, and ensure compliance with regulatory requirements. It will involve reviewing and recommending improvements to financial software systems, internal controls, and audit trails. |
| Operational Efficiency Consulting | This project aims to enhance efficiencies across Buy and Large’s retail and corporate operations. It will involve analyzing current operational workflows, identifying bottlenecks, and recommending improvements to processes and technologies used in daily operations. The focus will be on maximizing efficiency while minimizing costs and maintaining or improving quality of service. |
definition
The accounting principle that determines the specific conditions under which income becomes realized and can be reported in the financial statements.
The process of controlling and tracking an organization's expenditures to ensure that they are within budget and aligned with business objectives.
