Audit Process
Audit projects performed by the Office of University Audits are conducted in accordance with professional standards and department policies and procedures. Audit standards require all work to be performed in a confidential and ethical manner.
Audit projects are initiated as a result of:
- Annual Audit Plan
- Management Requests
- Fraud or Special Investigations
The Annual Audit Plan is established by University Audits as a result of its assessment of various criterion including:
- Existing control environment
- Regulatory climate
- Business and industry challenges
- Management concerns/issues
- Customer (student and patient) concerns
The Annual Audit plan is designed to address relevant risks that may negatively
impact University operations and/or performance.
The Annual Audit Plan is shared with members of Senior Management.
The Audit Process consists of four primary phases:
Planning
During the planning phase, the auditor establishes the detailed audit program and procedures that will be conducted during the scheduled engagement. Audit procedures are designed to meet the audit objective and scope established for the review (e.g. Annual Audit Plan).
The auditor obtains a general understanding of the department or process being audited. Typical audit planning activity includes:
- Review of existing policies, procedures and applicable regulations
- Discussion with Compliance, Financial Operations and/or General Counsel's Office
- Obtaining background or historical information regarding organizational and/or departmental performance
- Analysis of potential risks
- Communication with the client.
During the planning phase audit staff may utilize questionnaires, surveys or other tools to obtain an understanding of existing procedures and/or controls. Due to limited resources, each audit project is assigned specific budget hours to accomplish the approved objective and scope.
An Opening Meeting will be held with the client prior to our beginning actual audit fieldwork. Participants in this meeting will include appropriate management representatives as well as other relevant personnel that have knowledge of the process or department being reviewed. Management is responsible for identifying personnel that should participate in the Opening Meeting. During the Opening Meeting the auditor and client will discuss:
- Objective and Scope of the review
- Timing of the audit
- Contact persons/departments
- Management Concerns
- Current Practices
Fieldwork
During audit fieldwork, auditors will collect, analyze, interpret and document policies, procedures and transactions within an organizational unit. Auditors will perform their work in accordance with the audit program. During the course of fieldwork, internal control weaknesses may be identified that fall outside the original objective and scope of the review. University Audits is responsible to report these issues to management to ensure their appropriate disposition and resolution.
Auditors will perform their work in an efficient manner that minimizes department interruptions. Meetings will be scheduled in advance when possible and requests for information will be provided to management to facilitate the timely and orderly collection of data.
Interim meetings and updates will be provided throughout the audit to communicate the progress of the audit as well as observations to-date. Departmental personnel will have the opportunity to provide input regarding observations and recommendations.
Reporting
A draft audit report will be distributed to management when audit procedures are complete and initial observations and recommendations have been communicated.
A Closing Meeting will be held with management to discuss the audit observations, recommendations, and corrective actions once fieldwork is complete.
A Final Audit Report will be issued after the draft report is discussed with management.
Final Audit Reports are issued to the Dean or Director responsible for the entity or process being audited. A summary of all audits completed by University Audits is reported to the Board of Regents on a periodic basis.
Follow-Up
University Audits will conduct follow-up procedures to ensure corrective measures have been implemented in a timely and effective manner. Follow-up procedures are generally performed 6-12 months after the response is received. A summary of all follow-up completed by University Audits is reported to the Board of Regents on a periodic basis.
Client Responsibilities
During the course of the audit, management is expected to work proactively with University Audits to facilitate the effective and efficient completion of audit procedures.
