Internal Audit Process

Each audit is unique, but follows a fairly standard process. Below are the main phases of an Internal Audit:

The internal auditor establishes initial audit objectives and scope, and prepares a preliminary time frame and audit program. In addition, background information about the unit, department or function to be audited is obtained and notification of the audit is sent to the appropriate administrator.

Entrance Conference
The internal auditor meets with the administrator being audited to discuss the audit plan. Input is solicited on issues or concerns that can be included in the scope of the audit. The internal auditor arranges for audit logistics (facilities, schedules) and determines availability of unit personnel and documents.

Preliminary Survey of Operations
The internal auditor and staff tours unit operations, interviews unit personnel, and collects written policies, procedures and sample documents. Process flowcharts are prepared and the internal control points are identified. The preliminary survey provides the opportunity to confirm the internal auditor understands of operations with unit personnel and modifies the audit program as necessary.

Notifying the Administrator
The administrator responsible for implementing recommendations that may result from the audit is notified before the audit is begun. An opening conference is held with the administrator to define the scope of the audit and identify who will coordinate any audit needs (e.g., space, records, and meetings). Unannounced audits are initiated where appropriate.

Performing the Audit
The audit work is performed in accordance with the Statement of Responsibilities of Internal Auditing and follows the Standards for the Professional Practice of Internal Auditing and Code of Ethics of the Institute of Internal auditors. Audit concerns are discussed with auditee personnel as the concerns are identified.

Finalizing the Audit Report
The administrator responsible for areas included in audit recommendations may receive a draft of the audit report and is given the opportunity to comment before the report is finalized.

Resolving Recommendations Not Agreed to by the Administrator
When an administrator does not agree to a particular recommendation, resolution of the recommendation will be pursued through the prescribed organizational hierarchy.

Transmitting the Audit Report
Final audit reports are issued to the President’s Cabinet.

Audit Evaluation
As part of its self-evaluation program, the Internal Audit Office asks personnel in the unit to complete a client survey regarding the benefits and performance of the audit.

Following-up on Recommendations Agreed to by the Administrator
The internal auditor conducts follow-up procedures that include reviewing actions taken by the administrator to determine the extent to which audit recommendations agreed upon by management were implemented.

Reporting to the President’s Cabinet and Finance Committee
Each year, the Associate Vice President of Auditing Services and Reporting presents the results of the Internal Audit Program to the President’s Cabinet and the Finance Committee of the Board of Trustees.