I'm Going to be Audited. Now What?
Why was my department selected to be audited?
Several factors influence the scheduling of internal audits:
- degree of risk in operations or exposure to loss
- type of operating environment and prior audits completed
- current and planned work in other audit projects requiring substantial time commitments
- results of annual external audit of the university
- management's requests for assistance concerning the administration of a specific area
What is the audit process?
Cooperation and communication between the auditor(s) and the area being audited is essential.
Your active involvement will be needed throughout all phases of the audit as follows:
Entrance conference:
- meeting to review and discuss nature and scope of audit
- operational characteristics of department to be audited
- share any operational internal control concerns
- request review and assessment of management’s concerns
Field Work:
- gain sufficient understanding of operations and controls
- review of procedures and system documentation
- gather evidence through interviews and testing of procedures and transactions
- communication to verify understanding and share any concerns
- gather preliminary results of fieldwork to formulate corrective action plans needed
Reporting:
- prepare draft audit report
- audit opinion criteria reviewed
- formulate with management recommendations for any changes to address concerns
- ensure corrective action plan addresses any internal control weaknesses
Exit Conference:
- meeting to review and discuss the audit findings in draft audit report
- finalize corrective action plan with effective dates of planned activities
- audit opinion formulated
- seek acknowledgement of responsibility
Final Audit Report:
- final report includes audit opinion and audit comments
- signed acknowledgement of responsibility
- completed management corrective action plan
Audit Follow-up:
- schedule follow-up audit in subsequent months to determine status for implementation of management’s corrective action plans.
Will the audit disrupt my department's everyday activities?
Internal Audit makes every effort to minimize this disruption and cooperate with you to ensure a smooth process.