An integrated audit involves both the audit by an outside auditor of a client’s financial statements and its system of controls over financial reporting. An integrated audit will likely include an extensive examination of the controls associated with a firm’s transaction processing systems.
The objective of an integrated audit is for the auditor to express an opinion on a company’s controls over financial reporting.
Although every audit process is unique, the audit process is similar for most engagements and normally consists of four integrated phases of the audit process: Planning (sometimes called Survey or Preliminary Review), Fieldwork, Audit Report and Follow-up Review.
An integrated audit considers the relationship between information technology, financial and operational controls in establishing an effective and efficient internal control environment. Even though issues may not be identified in financial and operational controls, issues identified in information technology may negate the effectiveness of the financial and operational controls and visa-versa. Therefore, an integrated audit evaluates the interplay between financial, operational and technology processes on the achievement of control objectives.