Page 3 - IA Manual Mobile Version

1.4 Audit Approach and Proposed Scope Document

Audit approach documents are circulated to the client which will help them to understand: -

• The objective of internal audit,
• Impact assessment of internal audit,
• Guru & Jana approach of internal audit,

• Expectations from the Guru & Jana,
EP
• General and detailed scope of assignment,
• Composition of team members,
• Prerequisites,

• Sectoral experience of firm,

• Commercial terms and,
• Sectoral experience of firm

1.5 Initial meeting and agreeing on the scope

Initial meetings are conducted with management or Audit Committee by Audit Manager &
Engagement Partner to get the mutual understanding of proposed scope. Based on this, final EP
scope is agreed upon.

1.6 Negotiation and professional fees

a. Based on initial meeting discussions and proposed scope, using the previous

engagements’ experience w.r.t handling of work of similar nature, industry and based on
the assessment of number of man days required are estimated. Professional fees is
EP
proposed to management or Audit Committee.
b. After discussions with management or Audit Committee, the fee is decided on mutual
consent.