E.13 Project Assignment and Time Budget

  1. The project assignment initiates the start of an internal audit. The following steps have to be completed before any work is done on the project. The project assignment assigns the project name, obtains a project number from the Comptroller’s group, clarifies the project's objectives, identifies any special concerns or considerations, determines the audit period, and assigns audit personnel and time budget.

Project Time Budget

  1. A project time budget provides overall guidelines for the performance of the audit. In addition, it enables the lead internal auditor to control the audit work in process. It is essential that we control our time carefully in order that it may be utilized in the most effective manner possible and to provide data input to future audit planning.

  2. The estimated time budget is initially obtained from the annual internal audit plan. Any proposed changes to the budgeted hours based upon preliminary work or change in priorities are made through an allocation of the Practice Review and Internal Audit (PRIA) overall budget or if needed, requested through the Comptroller’s group with approval of the Auditor General after consultation with the Audit Committee. The project time budget should be approved by the Chief Audit Executive (CAE).

Guidelines and Format

  1. The budget process will be broken down into two phases. A portion of the budget should be allocated for the planning process. This will provide the necessary control over this phase of audit work. Near the completion of the planning process, the remaining budget should be allocated to the rest of the audit. Keep in mind the following items when allocating the time budgeted for the project:

    1. prior experience with similar audits,
    2. the nature and complexity of the function under audit,
    3. the experience level of the staff and the amount of supervision necessary, and
    4. job wrap-up.

  2. For purposes of overall control, the time budget should be broken down into the following general categories (more may be used if warranted):

    1. Planning—initial planning, preliminary survey
    2. Examination Work—allocated to the various segments of the audit project
    3. PRIA auditor’s review
    4. Reporting and clearance
    5. Edit, translation, layout, and publication

Budget Revisions

  1. Although budget controls are necessary for effective time management, the controls should not be so rigid as to stifle audit creativity. Budget controls should be sufficiently flexible to permit the adoption of new audit procedures or changes in the scope of the existing audit project. Revisions to the project time budget should be documented and approved. Changes to the scope of the project must be discussed with the area under audit.

Last modified:
2018-02-22