INTERNAL AUDIT FAQ's AND INFORMATION

What is Internal Audit?
Audit Process and detailed Summary of the Internal Audit Process (pdf)
Internal Controls and detailed Internal Control Questionnaire (pdf)
Risk Rating Instruction Sheet (pdf) and Risk Assessment Model (pdf)
Audit Tips
Benefits of Auditing

What is Internal Audit?
The purpose of audit services is to assist University personnel by conducting internal audits of University operations in a comprehensive, professional and objective manner.

Audits include:

• Evaluating compliance with applicable laws, rules and regulations, policies and procedures
• Review of internal controls
• Evaluating efficiency of operations

Types of Audits Performed:

• Financial Audits
• Operational Audits
• Compliance Audits
• Investigative or Fraud Audits
• Miscellaneous Audits

Audit Process

• Select an Audit Engagement
• Create Audit Program
• Notify Department Head of Audit Plans
• Planning
• Entrance Conference
• Fieldwork
• Draft Report
• Exit Conference
• Audit Report
• Follow-up Report

Internal Controls
Collection of processes that are intended to provide reasonable assurance that a department’s activities are:

• effective and efficient
• providing reliable financial information
• incompliance with applicable laws and regulations, including University policies

University management, not Internal Audit, is responsible for creating and maintaining a
good system of internal controls.  Internal Audit can provide evaluations of systems already in place.

Examples of Internal Control:

• Physical Safeguards
• Separation of Duties
• System of Approvals
• Periodic Reconciliations
• Controls on the Handling and Deposit of Funds

Audit Tips

• Be honest.
• Don't Worry. Don't waste time speculating about outcomes.
• Be cooperative. A fresh look at the way you do business will benefit your department.
• Listen carefully before answering. If needed, ask for clarification.
• Keep your answers direct and to the point.
• If you don't know the answer, say so.
• Locate requested documentation promptly.
• Be positive, not defensive. You will have the opportunity to respond.

How can your department benefit from an audit?

• Provide an objective assessment of areas of interest to management.
• Identify business strengths and opportunities for improvement of efficiency and effectiveness in the department's daily operations.
• Facilitate discussions with departmental employees to develop solutions to problems and promote operational efficiency.
• Identify deviations from management's performance standards and expectations.
• Recommend improvements to internal controls to prevent and detect problems and to protect personnel from undue suspicion.
• Positive change within the department that improve the overall results of operations.
• Investigations into possible frauds or irregularities.