When it comes to the auditing process, there are many questions. The following information will hopefully answer those questions, and provide you with a better understanding of auditing and what to expect during an audit.
What do controls provide?
Accounting controls safeguard assets and ensure accuracy of financial records. Administrative controls promote operational efficiency and adherence to policies and procedures.
Who is responsible for maintaining the system of internal control?
Management is responsible for establishing and maintaining an adequate system of internal control. Internal Audit is responsible for evaluating the adequacy of existing controls and for making recommendations for improvement.
What happens during the audit?
- The audit will generally start with an entrance interview with the department manager and other key members of the staff.
- Additional in-depth interviews will likely follow. Also, an examination of department records, equipment, cash handling controls, controls over computer access, and compliance with University, state, federal, and other laws, rules, and regulations will be performed. The scope of the work will be controlled to a great degree by the perceived risks of that area. The manager of the audited area will be updated on audit questions as they develop.
- At the end of the audit work, an exit interview will be held to discuss findings that may be included in the report. The manager of the audited area will have an opportunity to rebut any findings and to be involved in formulating any recommendations.
- An audit report draft will be sent to the administrative head of the area being audited asking for management comments/plan of action to each of our findings.
Who receives internal audit reports? Internal audit reports, including the auditee's responses, are issued to the Senior Vice President for Finance and Business/Treasurer. Copies are sent to executives, administrators, Deans and Chancellors, etc, as appropriate.
If you would like to see how closely you are following the University policies, please compare your activities with the corresponding policies from GURU.