GAO - 4 phases to the audit - not 3

The GAO publishes a huge audit manual - called the Financial Audit Manual or FAM. It is available here: http://www.gao.gov/special.pubs/gaopcie

I like how the GAO divides the audit phases into: Planning, Internal Controls, Testing, and Reporting. See the index below. This is more refined and realistic than the traditional phases of: Planning, Fieldwork, and Reporting. I am using their internal control guidance and tools now to improve my internal control documentation training.

Planning Phase FAM · Establish an Understanding with the Client 215 · Understand the Entity’s Operations 220 · Perform Preliminary Analytical Procedures 225 · Determine Planning and Design Materiality and Tolerable Misstatement 230 · Identify Significant Line Items, Accounts, Assertions, and RSSI 235 · Identify Significant Cycles, Accounting Applications, and Systems 240 · Identify Significant Provisions of Laws and Regulations 245 · Identify Relevant Budget Restrictions 250 · Identify Risk Factors 260 · Determine Likelihood of Effective Information System Controls 270 · Identify Relevant Operations Controls to Evaluate and Test 275 · Plan Other Audit Procedures 280 · Plan Locations to Visit 285 · Documentation 290

Internal Control Phase FAM · Understand Information Systems 320 · Identify Control Objectives 330 · Identify and Understand Relevant Control Activities 340 · Determine the Nature, Extent, and Timing of Control Tests and Compliance with FFMIA 350 · Perform Nonsampling Control Tests and Test Compliance with FFMIA 360 · Assess Internal Control on a Preliminary Basis 370 · Other Considerations 380 · Documentation 390

Testing Phase FAM · Design the Nature, Extent, and Timing of Further Audit Procedures 420 · Design Tests 430 · Perform Tests and Evaluate Results 440 · Sampling Control Tests 450 · Compliance Tests 460 · Substantive Procedures -- Overview 470 · Substantive Analytical Procedures 475 · Substantive Detail Tests 480 · Documentation 490

Reporting Phase FAM · Perform Overall Analytical Procedures 520 · Reassess Materiality and Risk 530 · Evaluate Misstatements 540 · Conclude Other Audit Procedures 550 · Determine Conformity with U.S. GAAP 560 · Determine Compliance with GAO/PCIE Financial Audit Manual 570 · Draft Reports 580 · Documentation 590