What is the first step in an audit project to ensure effective use of audit resources?

The first step in an audit project to ensure effective use of audit resources is developing the audit plan based on a risk assessment. This step is crucial because it establishes the framework for the entire audit process. A risk assessment helps identify the areas that pose the highest risk to the organization, allowing the audit team to allocate resources and focus on those aspects that need the most attention.

By prioritizing audits based on risk, the audit plan becomes more strategic and efficient. This approach ensures that the limited resources available for auditing are used where they will have the greatest impact on mitigating risks and enhancing the organization's control environment. When the audit plan is driven by a thorough risk assessment, it ensures that audit activities align with the organization's objectives, thereby maximizing the effectiveness of the audit function.

Other steps, such as scheduling audits or monitoring progress, come later in the process. While training audit staff and monitoring resources are important, they are secondary to the foundational aspect of risk assessment in the planning phase. Effective audits rely on a well-defined plan that is rooted in a clear understanding of the organization's risk landscape.