Once an entity on the annual audit plan is approved for review, the audit team initiates the formal engagement planning process. This phase moves through a structured pipeline designed to define the engagement scope, allocate resources, and establish timelines before fieldwork begins.
[Issue Engagement Notification] ──► [Conduct Initial Client Interviews] ──► [Draft Planning Memorandum]

The engagement planning workflow follows four key steps:
  1. Issuing the Engagement Notification Letter: A formal memo sent to the business unit head announcing the upcoming audit. This communication details the high-level focus areas, outlines scheduling expectations, and requests access to preliminary documentation, including standard operating procedures, organization charts, and past process metrics.
  2. Conducting Initial Client Interviews: The audit team meets with department managers and process operators to discuss the business unit’s objectives, review recent process adjustments, and gather initial insights on operational challenges.
  3. Executing the Planning Memorandum: An internal document prepared by the audit lead that defines the engagement’s scope, objectives, staffing model, and travel or logistics constraints.
  4. Publishing the Formal Audit Program: A detailed document containing the specific audit procedures, step-by-step testing instructions, sample selection rules, and evidence collection goals for the fieldwork phase.

 
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