Menu item 2, Audit Universe Management Menu, on the AMP Main Menu is used to define
the audit units and their categories, and to define the audit phases. Figure 1 shows the
structure of Example Inc.'s audit universe in detail.
Figure 1: Example Inc. Audit Universe Structure
An auditable unit is the smallest entity in an organization which would be considered
for risk assessment. This is also the level at which financial data can be recorded. Audit
categories are collections of audit units that have some risk characteristics in common.
Risk assessment can be performed at both the audit unit and the audit category levels. By
performing risk assessment at the category level, you are indicating the risk
characteristics of all the audit units in that category. The audit group is used for
reporting purposes only. Reports can be sorted, selected, and sub-totaled by audit group.
Audit phases are steps in performing an audit. Phases can be used for purposes of detailed
scheduling and time/cost tracking. The phase percentage enables AMP to break the
budgeted hours for an audit up into the number of hours required for each Phase.
Figures 2 and 3 provide a breakdown of the audit phase percentages for DIV1 and DIV2
respectively.
Figure 2: Audit Phases for DIV1
| DIV1 Phases | % |
| Planning | 20 |
| Field Work | 50 |
| Reporting | 30 |
Figure 3: Audit Phases for DIV2
| DIV2 Phases | % |
| Planning | 40 |
| Auditing | 60 |
| Non-productive | % |
| Training | 40 |
| Vacation | 60 |
We will define the audit phases first by using menu item 1, 2.1 Maintain Audit Phase Categories, and using the DIV1 file as input. Initially, DIV1 only has one audit phase category, called Standard Phases, which was automatically defined when the file was created. Use the EDIT command to change its name to DIV1 Phases. SAVE and QUIT back to the Audit Universe Management Menu.
Repeat 2.1 using DIV2 as input. Change the name of the default phase category from Standard Phases to DIV2 Phases. Add a new phase category, called Non-productive, to DIV2 by using the ADD command.
Returning to the menu, we can now define the audit phases using menu item 2, 2.2 Maintain Audit Phases, for both DIV1 and DIV2 using Figures 2 and 3 respectively. Initially, the DIV1 Phases category in DIV1 and the DIV2 Phases category in DIV2 will have a pre-defined audit phase called AUDIT. This Phase must be deleted before the new phases are added.
Now that the audit phases have been recorded, we are ready to define the audit universe
as diagrammed in Figure 1. Figure 4 contains data which we will want to record for each
audit unit for DIV1.
First, we use 2.4 Maintain Audit Unit Categories, to define the audit groups and categories. Using DIV1 as input, add two categories as shown in Figure 1: Location 1 in group Area 1; and Location 2 in group Area 2. SAVE and QUIT back to the Module 2 Menu.
We can now add audit units to the categories which were just defined using 2.5 Maintain
Audit Units.
Figure 4: Audit Information for DIV1
| Group: Area 1 - Category: Location 1 - Number: 1-1 | |||
| Unit Name: Department 1 Number of Employees: Dollar Size: Standard Hours: Standard Overhead: Last Audit Hours: Last Audit Start Date: |
Number:1-1-1 35 30,000,000 100 3,000 95 3/24/85 |
Transaction Volume: Dollar Throughput: Standard Rate: Last Audit Expenses: Last Audit Finish Date: |
20,000 15,000,00 50 2,750 4/05/85 |
| Unit Name: Department 2 Number of Employees: Dollar Size: Standard Hours: Standard Overhead: Last Audit Hours: Last Audit Start Date: |
Number:1-1-2 23 23,000,000 80 1,350 80 11/03/87 |
Transaction Volume: Dollar Throughput: Standard Rate: Last Audit Expenses: Last Audit Finish Date: |
35,000 20,000,000 50 1,500 11/12/87 |
| Group: Area 2 - Category: Location 2 - Number: 2-2 | |||
| Unit Name: Office 1 Number of Employees: Dollar Size: Standard Hours: Standard Overhead: Last Audit Hours: Last Audit Start Date: |
Number: 2-2-1 54 110,000,000 150 7,500 150 6/01/87 |
Transaction Volume: Dollar Throughput: Standard Rate: Last Audit Expenses: Last Audit Finish Date: |
200,000 75,000,000 50 7,000 6/24/87 |
| Unit Name: Office 2 Number of Employees: Dollar Size: Standard Hours: Standard Overhead: Last Audit Hours: Last Audit Start Date: |
Number: 2-2-2 27 45,000,000 110 1,800 110 4/10/88 |
Transaction Volume: Dollar Throughput: Standard Rate: Last Audit Expenses: Last Audit Finish Date: |
95,000 23,000,000 50 1,500 4/27/88 |
Using DIV1 and input, add two audit units and their data to each category (by selecting the category and using the ADD command) as shown in Figure 4. Record all the data except the Next Audit Information. This will be filled in automatically by AMP. Once all four audit units are recorded, QUIT back to the audit Universe Management Menu.
Repeat the steps followed above for the DIV2 file using Figure 5. When defining the Administration
category, select the audit phase category Non-productive as the associated phase
category. Try the LIST command to specify the phase category. This will list all the phase
categories defined and enable you to select one by entering its sequence number. You can
also try printing some of the reports in 2.6 Print Audit Unit Reports. These will display
the information recorded for the audit units as well as their concern indices and priority
scores.
Figure 5: Audit Information for DIV2
| Group: Company 1 - Category: Plant 1 - Number: 1-1 | |||
| Unit Name: Operations Number of Employees: Dollar Size: Standard Hours: Standard Overhead: Last Audit Hours: Last Audit Start Date: |
Number:1-1-1 210 350,000,000 300 2,500 300 10/05/87 |
Transaction Volume: Dollar Throughput: Standard Rate: Last Audit Expenses: Last Audit Finish Date: |
45,000 200,000,000 50 1,500 5/28/88 |
| Group: Company 1 - Category: Plant 2 - Number: 1-2 | |||
| Unit Name: Inventory Number of Employees: Dollar Size: Standard Hours: Standard Overhead: Last Audit Hours: Last Audit Start Date: |
Number:1-2-1 95 600,000,000 240 1,500 240 5/02/88 |
Transaction Volume: Dollar Throughput: Standard Rate: Last Audit Expenses: Last Audit Finish Date: |
45,000 200,000,000 50 1,500 5/28/88 |
| Unit Name: Non-productive Number of Employees: Dollar Size: Standard Hours: Standard Overhead: Last Audit Hours: Last Audit Start Date: |
Number: 2-2-1 0 0 180 0 0 0/00/00 |
Transaction Volume: Dollar Throughput: Standard Rate: Last Audit Expenses: Last Audit Finish Date: |
0 0 0 0 0/00/00 |
This brings us to the end of this tutorial. We have skipped some sections of AMP in
the interest of reducing the time requirements of the tutorial. We encourage you to
explore the other features and experiment, perhaps by apply AMP to your own data.
