AUD Internal Audit

žThe Role of the

Internal Audit Department

žDefinition of Internal Auditing

ž“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. ”

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We’re Here to Help!

žWe Report to the Board of Regents Audit Committee

Ensures independence

• Elevate issues to a level where they can be corrected
• Keeps Regents informed
• Meets quarterly

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žWe have a plan!

žRisk based audit plan developed with input from across the University

žRisk factors:

• Impact
• Probability
• Controls

žWhat Is the Plan?

žList of audits for fiscal year

Based on risk assessment and available man hours.

Includes estimated budget hours and completion date.

žApproved by Audit Committee

žAuditable Entities

WE DO AUDIT

• žOperations and compliance
• žDepartments
• žColleges or Schools
• žPrograms, Grants, Contracts
• žInformation Technology Systems
• žUniversity-wide Processes

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žžInternal Audit is Intake Point for Whistleblowers

University policy requires Internal Audit to receive reports of

Misconduct

Fraud

Several ways to report

Hotline

E-mail

Phone

Walk in

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žInvestigations of Fraud and Employee Misconduct

žWhenever possible we will refer to the appropriate Dean, University Police, OEO or Human Resources for investigation

žUniversity policy requires Internal Audit to investigate if financial or operational

žInternal Audit coordinates and reports to the State Auditor

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žWho Are We?

We are University employees

• We are certified
• public accountants,
• internal auditors, fraud examiners and information system auditors
• We are a staff of 7 auditors

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žPreventive Measures

• žMake sure your controls are working
• žReview and reconcile
• žCheck the work of your subordinates
• žDon’t give in to the temptation to skip controls because you are busy!

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žWhat is included in the audit report?

• žWhat was found
• žWhy it happened
• žWhat is required
• žWhat effect it has
• žRecommendation for improvement
• žResponse – who, when and how

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žWhat happens after the audit?

• Follow-up
• Review corrective action
• Report to Audit Committee
• žWho Audits the Auditors?
• žWe must have a peer review at least once every five years
• žOur Standards are set by the Institute of Internal Auditors, and the American Institute of Certified Public Accountants

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