Document updates on the internal audit plan status and its implications for the audit committee's decision-making process. This document is primarily used to communicate with the audit committee about the status of various audits and projects scheduled throughout the fiscal year. It details the execution stages of ongoing audits, including scope, fieldwork progress and reporting phases, as well as outlines the results and recommendations from audits completed within the quarter.

Additionally, it includes updates on special projects added to the audit plan, follow-up on previously issued reports to ensure compliance and corrective actions, and a preview of upcoming audit projects for future quarters. This document is crucial for maintaining transparency, accountability, and oversight. It allows the audit committee to monitor internal controls, assess the effectiveness and efficiency of operations, and ensure compliance with regulatory standards and best practices. It also aids in strategic planning by providing insights into potential areas of risk and improvement within the organization.

Overdue recommendations include:

• A formal policy has yet to be developed to review user access to the network file server.
• Data backup is performed, but the disaster recovery plan in place is incomplete.
• The company needs to prepare periodic reporting on debit balances in accounts payable.
• Procedures regarding the capitalization and depreciation of fixed assets are in place, but they have not been documented.