Methodology

Our audit methodology is broken-down into 3 key steps, and can be summarized as follows :

I – DESIGN PHASE (Type I & II) :

Definition with the client of the expected scope, risks identified as significant, and then internal controls meant to cover risks previously considered.

Our preparation work includes the followings :

1. 1. ISAE scope definition (based on your service and general client offer)
   2. Definition of the number of processes within the agreed scope.
   3. For each process:
      1. Listing of all existing procedures and of the ones still to be created.
      2. Formalization of risks and controls within the dedicated documents to be filled-in (i.e. matrices).
      3. Actual on-site audit (observation) of control activities found on final & official versions of matrices.

II – TESTING PHASE (Type II only):

Evaluation of the effectiveness of your internal controls performed by testing representative random samples.

Our testing-work includes the followings:

1. Writing of test-scripts for each control activity within the agreed scope.
2. Execution of actual tests of selected representative samples
3. Test results and conclusions on the control effectiveness.
4. For each control tested as negative (or « failed »):
5. 1. 1. Suggestion of a corrective action plan to be validated and implemented by the Management, (the action plan aims at correcting the root-cause of the noted deficiency).
      2. Retesting of a new sample in order to ensure that the control previously noted as failed is now functional.

III – WRITING & VALIDATION PHASE OF THE FINAL REPORT (Type I & II) :

We present a detailed summary of our work & conclusions in a final report that is then reviewed and formally validated by our CPA partner firm (located both in Paris and New-York), and fully entitled to sign such ISAE reports (as per AICPA standards).

 You then receive copies of the final report that you can communicate at your discretion to external parties of your choice, typically your clients or prospects. Also, you can mention this accreditation as part of your general corporate communication efforts.