Best method of internal audit checklist

Please note that the “best method” will depend on your purpose.

In case you want to know if specific evidence exists, or if specific tasks were performed, then a close-ended question (i.e., with a yes/no answer) is the best approach (like the ones in the Internal audit checklist sample).

On the other hand, if you want to assess if someone knows how to perform an activity, or his/her understanding of something, then an open-ended question is better because this approach makes the person elaborates an answer.

WHEN USING A PROCESS BASED APPROACH WHICH METHOD IS EXPECTED TO BE USED ?

I’m assuming that your question is about which method to use (opened/closed question) when using a process-based approach for the audit.

Considering that, the method will depend on your objective:

• If you want to find out documents/records related to the process, the closed question method is more appropriated
• If you want to find out people’s understanding of the process, the opened question method is more appropriated

In a process-based approach to elaborate an audit checklist the questions should cover the process’s elements:

• Customers: the entities which receive/use the outputs (e.g., customers, other departments/processes, etc.). For this element either closed or opened questions can be used, depending upon what you want to verify.
• Outputs: what the process is intended to deliver (e.g., information, a product, a service, etc.). For this element either closed or opened questions can be used, depending upon what you want to verify.  
• Tasks: what needs to be done, by whom, how, when. For this element, open questions are more useful.
• Inputs and resources: the material that is needed to produce the outputs (e.g., raw material, specifications, manuals, policies, procedures, etc.) and required infrastructure (e.g., equipment, competencies, facilities, etc.). For this element either closed or opened questions can be used, depending upon what you want to verify.  
• Suppliers: the entities that supply the inputs and resources (manufacturers, other departments/processes, etc.). For this element either closed or opened questions can be used, depending upon what you want to verify.