What is Internal Auditing?
As defined by the Institute of Internal Auditing (IIA); 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.
What are the benefits of Internal Auditing?
Having an Office of Internal Audit provides many benefits to an organization. By assessing the ethical climate, compliance with policies, regulations, and laws, Internal Audit ensures that the overall quality of work is being held to the highest standards. Furthermore, when dealing with federal funding and grant activity, it is crucial that we have safeguards in place and are constantly monitoring the activity at our campuses.
What does the audit process consist of?
While every audit project is unique, there is a formal process that the Office of Internal Audit follows. Internal Audit staff will gather all pertinent information to develop a risk based audit plan. After initial discussions with the lead audit contact, a scope memo is issued, which documents the objective, timing, and staffing of the audit.
After the scope memo is issued, the fieldwork phase begins. Internal Audit staff will review all relevant areas pertaining to the audit by conducting interviews with campus/department staff. Throughout the fieldwork process, Internal Audit will keep the campus/department updated on the progress of the audit and if any observations have been noted. Once the fieldwork has been completed, and a formal exit conference has been conducted to review any relevant findings, a draft report will be created including any previously discussed findings and recommendations. Campus/Department management will then review the report, and document their formal management response to the observations and recommendations. This response documents what action will be taken to address the audit recommendation, a responsible party, and an expected date of completion. A final report is then issued to the appropriate parties.
Depending on the risk level of the observations identified in the report, a follow-up process may be conducted. Internal audit will address the engagement observations and recommendations with the appropriate levels of management responsible for taking action. A review of the supporting documentation and/or other additional testing will be conducted to assess whether managements actions have ben implemented, based on the implementation date previously stated. A memorandum, or separate audit report will be issued, depending on the significance of the follow-up observations.
Will I be kept informed throughout the audit?
Yes, the Internal Audit team will be in contact with campus/department management, and any observations or findings will be communicated during the course of the audit.