Audit Universe

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Establishing and Maintaining the Audit Universe

The audit universe is a comprehensive list of all auditable entities within a bank. This includes entities, operations, functions, processes, and systems. An effective audit universe allows internal auditors to ensure comprehensive coverage and a risk-based audit approach.

Key Components of the Audit Universe

  1. Identifying Auditable Entities:

    • Entities: Individual departments, business units, or subsidiaries.
    • Operations: Day-to-day activities within entities.
    • Functions: Specific areas such as finance, HR, compliance, and risk management.
    • Processes: End-to-end workflows within functions.
    • Systems: IT infrastructure, including applications, databases, and networks.

  2. Profiles of Significant Units:

    • Business Units: Major divisions or product lines.
    • Departments: Key functional areas within business units.
    • Products and Services: Core offerings that drive revenue and risk.

  3. Aggregation Levels:

    • Individual Department Level: Detailed, granular view of each department.
    • Aggregate Organizational Levels: Higher-level view to streamline audit processes and reduce duplication.

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