Frequently Asked Questions
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 report.