Linkage: How Audit Objectives, Risk, Findings & Evidence Fit Together

Linkage is a funny term, but it is what I look for when reviewing working papers.

I want to make sure that the major parts of the audit fit together or link.

• The objective has been satisfied
• The risks have been addressed
• The findings address the objective and the risks
• The findings are supported by evidence

Unfortunately, the GAO doesn’t draw us a complicated visual of how this all fits together. (Like I’ve tried to do here and provided a Linkage PDF for you to download!)

However, they do tell us in words how it all works. The concepts and terms linking in the standards are too many to list, but here are a few that come to mind.

GAGAS 2021: 8.35 A written audit plan provides an opportunity for audit organization management to supervise audit planning and to determine whether

1. the proposed audit objectives are likely to result in a useful report;
2. the audit plan adequately addresses relevant risks;
3. the proposed audit scope and methodology are adequate to address the audit objectives;
4. available evidence is likely to be sufficient and appropriate for purposes of the audit; and
5. sufficient staff, supervisors, and specialists with adequate collective professional competence and other resources are available to conduct the audit and to meet expected time frames for completing the work.

GAGAS 2021: 8.06 Auditors should design the methodology to obtain sufficient, appropriate evidence that provides a reasonable basis for findings and conclusions based on the audit objectives and to reduce audit risk to an acceptably low level.

Audit on, my friends!

Want to learn more about linkage?

Then you’re in the right place! I invite you to join me for one of my most popular classes, the Virtual Audit Bootcamp scheduled for June 3-7. In this series of five ½-day webinars for a total of 20 CPE hours, we explore each phase of conducting a government audit while learning how to comply with significant Yellow Book and IIA standards. And, there’s a bonus to help develop your interviewing skills! Earn 7 extra hours of CPE at your own pace with a complimentary self-study course, Interviewing Skills for Auditors. This class often sells out, so register today!