Systems audits focus on the design and/or operating effectiveness of an entity's internal control system. The auditors express an opinion on whether
- the internal control system set up by the entity for the purpose of managing risks to the achievement of the objectives of the project, was suitably designed;
- and whether this system operates effectively in the period from [date] to [date] when the audit is extended to its operating effectiveness.
Systems audits can be useful before the start of a project, at the early stages of project implementation and sometimes at mid-term. In these cases, system audits can make an impact through the auditor's analysis of the internal control systems and through subsequent recommendations for improvements.
Systems audits must be carried out in accordance with the following models:
- For the design of the internal control system
- For the design and operating effectiveness of the internal control system
- They are also to be used together with the ToR for expenditure verifications to replace the ToR for financial and systems audits.