Audits can either be financial or operational, or a combination of both.
In a financial audit, the financial records of the department and the corresponding accounts in the University's general ledger are examined and verified.
In an operational audit, the internal policies and procedures of the department are observed and documented to verify efficiency, effectiveness and consistency with the University's overall policies and procedures.
All audits include an examination and evaluation of a department's internal controls, also referred to as checks and balances.
At the conclusion of the audit, a final report is prepared which summarizes the findings and recommendations. The University president, Board of Trustees Audit Committee and departmental management receive copies of this report.
When a department is audited
the following will occur:
Notification of departmental manager of initiation of audit and request to schedule pre-audit meeting
Pre-audit meeting to outline the scope of the audit and documentation requirements, establish a timetable and discuss concerns
On site observation and collection of information
Analysis of information gathered on site and through internal sources
Meeting to discuss and clarify preliminary findings and recommendations
Final report issued and distributed
Principles that Guide Audits:
Generally Accepted Governmental Auditing Standards (GAGAS)
Credibility is essential to the effectiveness of the Internal Audit Department, and the following general standards represent the fundamental requirements of ensuring the credibility of audit results:
Independence of audit department and staff
Exercise of professional judgment in the performance of all work and preparation of related reports
Competence of the audit staff, including continuing professional education
Existence of quality control systems and external peer reviews