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Internal
Audit
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Although every audit is unique, the audit process is similar for most and usually consists of the following
phases:
The most successful audits are those in which a constructive collaboration is achieved between the area
being reviewed and the auditor. To that end, we will make every effort to keep you informed. It is
important that everyone involved understand the audit process.
As with any special project, an audit results in a certain amount of time being diverted from your department's
usual routine. One of our objectives is to perform the audit efficiently and effectively to minimize the
disruption of your ongoing activities.
ENTRANCE CONFERENCE
An audit begins with an initial meeting between the auditor
and management from all interested offices and units. The entrance
conference provides an opportunity for discussion of the audit
process, the scope and objectives of the audit, the estimated
completion date, and on-site work space requirements. It also
provides management with an opportunity to discuss any questions
or concerns they may have. Management's input at this stage
will help us to establish a work plan to minimize audit time
and avoid disruption of ongoing activities to the greatest extent
possible. (top)
FIELDWORK
The first step of the actual audit consists of interviews with
managers and staff, and a review of documents and data to gain
a better understanding of the unit's operations. Transactions
and records are then tested to determine if controls are operating
as intended. Informal communication between the audit and unit
management is maintained to avoid misunderstandings, and to
ensure that there are no surprises in later stages of the audit.
(top)
DRAFT AUDIT REPORT
After all fieldwork is completed, a draft report is prepared by the auditor. The report documents
our objectives, procedures performed, our conclusions as to
the adequacy of controls, and specific observations and recommendations
for improvement if necessary. Internal Audit management reviews
the draft thoroughly before it is presented to the unit's management.
This draft report is prepared only for the unit's operating
management and it provides the basis for discussions at the
exit conference. (top)
EXIT CONFERENCE
Once the unit's management has had an opportunity to review
the draft audit report, the auditor will contact them to arrange
an exit conference. The purpose of this conference is to review
the draft audit, verify that the audit results are correctly
stated, solicit management comments on the implementation of
the audit recommendations, and discuss any other issue related
to the audit. Management may also take this opportunity to comment
on the audit process and make suggestions for future audits.
(top)
FINAL AUDIT REPORT
The final audit report is addressed to the Vice President responsible
for the unit audited or the Provost. A copy of this report is
sent to the unit administrator and the Vice President for University
Services. This report includes unit management's comments and
implementation schedule at the end of each recommendation. A
copy of the campus follow-up policy is attached to each report.
(top)
AUDIT REPORT FOLLOW-UP
The Internal Audit department is responsible for the periodic
follow-up on the status of audit
recommendations. This provides an opportunity for unit management
to provide us with a summary of the status of each unresolved
recommendation, including a timetable for its implementation.
When these recommendations have not been fully implemented or
scheduled for implementation within six months of the issue
date of the report, the Vice President for University Services
will be provided a copy of the unresolved recommendations. The
Vice President for University Services will contact the Provost
or appropriate Vice President to request an explanation of why
appropriate action has not been taken to resolve the recommendations.
If the recommendations remain unresolved during the next three-month
period, the Office of the President will request an explanation
of the circumstances that prevent their resolution. (top)
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