WHAT IS INTERNAL AUDITING?
Internal Auditing is an independent, objective assurance and
consulting activity designed to add value and improve an organization’s
operations. It helps an organization accomplish its objectives by
bringing a systematic, disciplined approach to evaluate and improve the
effectiveness of risk management, control, and governance processes.
(The Institute of Internal Auditors definition.)
HOW ARE AUDITS CHOSEN?
With management’s input Internal Audit prepares an assessment of
risks that may affect the University. A variety of risk factors are
considered including financial, existing controls, degree of change or
stability, complexity, length of time since last audit, and available
audit resources. The audit plan is revised throughout the year as risks
and priorities change.
WHAT ARE INTERNAL CONTROLS?
Controls include policies and procedures to help prevent errors from
occurring or to detect and correct them if they do occur. Preventive
controls include proper segregation of duties, authorizations and
approvals, limited access to assets, and supervisory oversight. To
illustrate segregation of duties, the same individual should not:
• Initiate or approve purchase and receive goods,
• Collect money and record receipt,
• Issue checks and reconcile accounts, or
• Post transaction and reconcile account.
Detective controls include reconcilments, appropriate and timely
resolution of variances between budgeted and actual transactions, and a
random review of transactions on a periodic basis.
WHAT SHOULD I EXPECT DURING AN AUDIT?
You will be notified when we begin an audit in your area. We will
schedule an entrance conference to explain our audit process and to
obtain your input. During the audit we may meet with faculty or staff
in your area, review and evaluate processes and systems, examine
documentation and select transactions for testing. At end of audit we
will prepare a draft report, which will include identified opportunities
for improvement. We will share draft report with you for your input and
action plans. We will usually schedule an exit conference to finalize
audit report and management action plans.
WILL I BE KEPT INFORMED DURING THE AUDIT PROCESS?
Yes. The auditor will keep you and your team informed of progress.
We are sensitive to your busy schedule and will plan our work to limit
disruptions to you/your team. If you would like more frequent updates
than you receive, just ask.
WILL I HAVE A CHANCE FOR INPUT BEFORE THE AUDIT REPORT IS ISSUED?
Yes. Audit issues will be discussed with you and your team as they
are identified. Your feedback and input will be welcomed as
opportunities for improvement and recommended actions are developed. You
will have an opportunity to review and provide feedback to our draft