This plan is uploaded to be use as a sample to help people to get an idea. This internal audit plan is prepared for an automotive business activity. I hope it will be useful.

1. Annual Audit Plan (Proposed)
April – December 2015
ABC COMPANY

2. Table of Contents
1. Introduction……………………………….………………3
2. Internal Audit Work Plan………………………....4
3. Internal Audit resources ………………………...5/6
4. Proposed Audit Units ….……………………….....7/10
5. Internal Audit Work Plan Sheet...............11
2

3. Introduction
This report seeks VC & CEO approval for the proposed Internal Audit Plan for
2015. The Director of Internal Audit develops the Internal Audit Plan for all
Business Units that will be audited for financial, operational, systems and
risk management controls.
Internal Audit will promote continuous improvement by evaluating the
adequacy and effectiveness of internal controls, identifying significant risk
exposures, and monitoring and evaluating the effectiveness of AAC risk
management systems relating to:
Adequacy, reliability, and integrity of financial and operational
information;
Compliance with contracts, policies, plans, procedures, laws and
regulations;
Achievement of established objectives and goals;
Economical and efficient management of resources; and
Safeguarding of assets.
3

4. Internal Audit Work Plan
The Internal Audit Work Plan is set out with the discussion with the VC & CEO.
The plan is designed on priority basis of units, departments or activities which
might have potential risk factors.
The Internal Audit Work Plan has 3 sections:
 High Priority - Theses were highlighted during a recently held meeting. The
management is deeply concerned on process weakness and weak internal
controls on certain areas which are explained on page 7.
 Medium Priority - These are departments / processes that will be covered in
the coming twelve months.
 Low Priority – New units included which mainly relate to non-operational
activities which will be covered in the coming twelve to eighteen months.
4

5. Internal Audit Resources
The 2015 Plan has been prepared on the basis that there will be 3 full time staff
throughout the period of this Plan able to contribute 198 days each. Also, it is possible,
that the resources provided for Internal Audit may, at some time, need to be increased.
Any such adjustment would be based on periodic evaluation by the Director of Internal
Audit and the approval by the VC & CEO.
Currently, the Internal Audit Department consists of the following:
Employee 1
Internal Audit Director. Joined on 1st March 2015.
Employee 2
Working as an Audit Manager in Finance Department from 2007 and transferred to
Internal Audit Department on December 2008, also worked as a Senior Auditor with
Deloitte for 15 Years.
Employee 3
Internal Audit team member since October 2008 – Internal Audit and Accounting
background and considerable experience in Operational and Financial Service &
Manufacturing Companies.
Employee 4
Working as an Accountant in Finance Department from 2007 and transferred to Internal
Audit Department on December 2008.
5

6. 6
Employee 1
Director of Internal Audit
Vacant
Manager Internal Audit
Internal Audit Resources
Employee 2
Internal Auditor Team
Employee 3
Internal Auditor Team
Employee 3
Internal Auditor Team
Vacant
Internal Auditor Team

7. Proposed Audit Units for 2015
 Audit units and areas were prioritized on a scale from high, medium and low.
Priority was determined from the feed back from the VC & CEO. This was
discussed during the meeting in Riyadh.
7
HIGH MEDIUM LOW
Used Vehicles - Sales Human Resources Finance Department
Workshop - Sales Creditor / Purchases Tire Company
Scrap Sales Corporate Office
Warranty Claims Fixed Assets
Insurance of leased expired
vehicles
Inventory - Vehicles
Inventory – Spare Parts
Repossessed Vehicles
New Vehicles - Sales
Cash management
A/R & Collection

8. Proposed Audit Units for 2015
All dealerships and units will be audited during the period from April – December 2015.
8
Audit Service Auditable Entity Primary Objective
1 Audit Used Vehicles Department Control Weakness, Internal Control, Process
Internal audit team will cover a wide range of key management controls in all Dealerships. This includes process review
and financial and operational systems audit rin line with audit requirements of AAC.
2 Audit Workshop Department Control Weakness, Internal Control, Process
The areas covered will be Job Orders; Repair Orders; Parts Order; Warranty Claim; Income System.
3 Audit Warranty Claim Control Weakness, Internal Control, Process, Reconciliation
Internal Audit will focus on Job Orders; Repair Orders; Parts Order; Warranty Claims; Income System.
4 Audit Scrap Sales Control Weakness, Internal Control, Process, Reconciliation
Document the process for scrap sales and eligibility to qualify under this category. Furthermore we will audit the
mechanism for the disposals.
5 Audit Insurance – Lease Vehicles Control Weakness, Internal Control, Process, Reconciliation
We will review Insurance of New Leased Vehicles; Expired Leased Vehicles; Transferred Leased Vehicles and document
any control weaknesses.
6 Audit Inventory - Vehicles Physical, Internal Control, Verification
Internal Audit team will review new and used vehicles stock that include: Physical stock taking along with system
reconciliation.

9. Proposed Audit Units for 2015
9
Audit Service Auditable Entity Primary Objective
7 Audit Inventory – Spare Parts Physical, Internal Control, Verification
A process documentation will be made which will detail the ordering procedures and usage and overstocking on a
sample basis.
8 Audit Repossessed Vehicles Control Weakness, Internal Control, Process, Verification
Internal Audit team will review Aging Reports, Physical Existence and Disposal Process.
9 Audit New Vehicles - Sales Control Weakness, Internal Control, Policies, Procedures
Internal Audit team will review and document the process from the initial ordering of the cars until it is delivered to
the customer.
10 Audit Cash management Control Weakness, Internal Control, Verification
Audit the controls that ensure cash and bank accounts are reconciled and used effectively and securely.
11 Audit A/R & Collection Control Weakness, Internal Control, Process, Reconciliation
Document the process, identify any control weaknesses and assess the follow up mechanism whether it is appropriate
or not.
12 Audit Human Resources Control Weakness, Internal Control, Policies, Procedures
An audit will be done to cover the Hiring Procedures, Payroll Function, Travel System, School Fee, Annual Leave and
Personal Files.
13 Audit Creditor / Purchases Control Weakness, Internal Control, Process, Reconciliation
Areas to be covered include: Ordering; Receipt of Goods/Services; Payments; Computer System; Financial
Reconciliation.

10. Proposed Audit Units for 2015
10
Audit Service Auditable Entity Primary Objective
14 Audit Finance Department Control Weakness, Internal Control, Reconciliation
Provide management with an in depth assurance of the efficiency and effectiveness of the Core Financial Systems.
15 Audit Tire Company Control Weakness, Internal Control, Process, Verification
Internal Audit team will assess the consistency and effectiveness of controls and risk management across quick service
centres.
16 Corporate/Cross Dep. Corporate Office Control Weakness, Internal Control, Risk Management
Focus on the compliance with policies and procedures and effectiveness of management controls. Emphasis will be on
key risk controls and management of risk to minimise company exposure.
17 Corporate/Cross Dep. Fixed Assets Control Weakness, Internal Control, Verification
Full review to ensure that assets are effectively and securely held, used and disposed of, with sufficient, complete and
accurate information available for incorporation into the financial accounts.

11. Internal Audit Work Plan Sheets (Proposed)
Activity
Locati
on
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Jeddah (High) JED X X
Riyadh (High) RYD X X
Dammam (High) DMM X X
Corporate Office DMM X
HR DMM X
Cash Management All X X X X X
Spare Parts All X X X X X
Debtors All X X X X X
Purchases (Incl.
New Vehicles)
All X
Inventory Counts All X
Tire Company X
11

12. The Audit plan is flexible allowing Internal Audit to respond to concerns/requests
from the VC & CEO and Senior Management.
12
Internal Audit Program 2015 (Proposed)