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Internal
Audit
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FREQUENTLY ASKED QUESTIONS
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Click on a question to go to the answer.
HOW DO I KNOW IF I WILL BE AUDITED?
Our annual audit plan is distributed to the Vice Presidents and the Provost. With the exception of audits
that require no prior notification to be effective, such as cash counts or payroll distributions, the units
responsible for the audits listed in this plan are contacted prior to the start of the audit. An entrance
conference is held to discuss the audit and address any concerns management may have.
However, it is not unusual for the plan to be revised during
the year to accommodate special requests that need immediate
attention. When this happens, audits may be delayed until the
next fiscal year and would appear in the subsequent years' audit
plan. (top)
HOW LONG WILL THE AUDIT TAKE?
Audits may last from several days to several months and will
vary in length depending on an area's size, complexity, and
the specific audit objectives. Not all the time devoted to the
audit will be evident to you because of the amount of preparation,
analysis, and related work needed to document the effort. The
auditor assigned to your unit will give you an estimate of the
time needed to complete the audit at the entrance conference.
(top)
CAN I ASK INTERNAL AUDIT FOR ASSISTANCE WHEN I'M NOT BEING AUDITED?
Yes, while our department's mission is principally accomplished
through formal audits, there is no need for you to rely solely
on audits to utilize the resources of our department. Internal
Audit acts as an in-house consultant on internal control matters,
and will be happy to provide you with information and suggestions
on controls in specific areas. (top)
ARE AUDITORS LOOKING FOR FRAUD WHEN PERFORMING AUDITS?
Auditors are not specifically searching for the existence of fraud when performing audits. We are more concerned with ensuring that adequate systems of internal control exist to reduce the risk of fraud. In situations where internal controls are weak, our testing is designed to determine if indications of fraud exist.
(top)
WHAT SHOULD I DO IF I SUSPECT SOMEONE IS INVOLVED IN SOMETHING ILLEGAL?
If you suspect fraud or other questionable acts in your department
contact your supervisor, the Controller,
or the Director
of Internal Audit immediately. Do not try to question anyone
or otherwise investigate the matter yourself. (top)
WHAT ARE INTERNAL CONTROLS?
Internal controls encompass a unit's entire set of methods and
procedures that are used in the day-to-day activities of the
unit. These methods and procedures safeguard the unit's assets,
check the accuracy and reliability of its accounting data, promote
operational efficiency, and encourage adherence to prescribed
policies. Effective internal control systems are designed to
ensure that resource use is consistent with laws, regulations,
and policies and that resources are safeguarded against waste,
loss, and misuse. (top)
ARE INTERNAL AUDITORS RESPONSIBLE FOR MAINTAINING THE UNIVERSITY'S SYSTEMS OF INTERNAL CONTROLS?
No. University management is responsible for maintaining an
adequate system of internal control. Internal Audit independently
evaluates the adequacy of existing internal control systems
by analyzing and testing controls, and makes recommendations
to improve controls based on this analysis. (top)
WHO AUDITS THE AUDITORS?
The Institute of Internal Auditors suggests that an external
review be performed of Internal Audit Department operations
at least once every five years. These reviews must be performed
by qualified individuals who are independent of the University,
usually an independent public accounting firm. The Office of
the New York State Comptroller will also periodically audit
the operations of the State's Internal Audit units. These audits
cover compliance with professional standards, independence and
objectivity, audit coverage and documentation, and staff training.
In addition to this external review, the University's Internal
Audit Department periodically completes a formal self-evaluation
of its operations using a program developed by the Institute
of Internal Auditors. As part of this self-evaluation program,
we may ask individuals who have recently been audited to comment
on Internal Audit's performance during the process. This feedback
has been very beneficial to us, and has led to changes in our
procedures. (top)
WHAT IS THE RELATIONSHIP BETWEEN THE INTERNAL AUDITORS AND EXTERNAL AUDITORS WHO AUDIT THE UNIVERSITY?
The University is visited by several external auditors during
any given year, including independent certified public accounting
firms, the Office of the New York State Comptroller, and SUNY
System Administration auditors. The University's Internal Audit
Department may work with these auditors by arranging interviews
with University staff, coordinating access to the records the
external auditors may require, and allowing them to review relevant
work of our Department. The primary purpose of this is to expedite
the external auditors stay at the University.
We also consider
one of our primary objectives to be protecting the University
from criticism by external auditors. Our audit plans try to
anticipate areas that external auditors will review so that
we can look at them first and resolve any problems internally.
We think it is preferable for auditors from our staff to work
with you to improve University operations rather than external
auditors issuing reports of our operations that go to newspapers,
politicians, and other State and Federal agencies. (top)
WHAT IF I HAVE MORE QUESTIONS?
Please feel free to call or write the Director,
or any staff
member at any time. We are located on the North Campus,
room 322 Crofts Hall. (top)
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