Chapter 12. Internal Audit Department

12.1. Internal Audit

Definition

Internal Audit: An independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization.

Policy

To accomplish its assigned responsibility, the Internal Audit department has full access to all University records, properties, and personnel relevant to the subject under review and is free to review and appraise policies, plans, procedures, and records. Questions regarding the authority of an auditor should be directed to the internal auditor or to the secretary of the Board of Control.

In performing its functions, the Internal Audit department has no direct responsibility for, nor authority over any of the activities that it reviews. Therefore, the internal audit review and appraisal does not, in any way, relieve other persons in the organization of the responsibilities assigned to them.

Section 2.03 of the Board of Control bylaws explains the role of the internal auditor. Refer to the Web site to view the bylaws in their entirety.

Procedure

When the department receives a memo from the Internal Audit department informing them an audit of their area is planned, do the following:

1. Wait for Internal Audit to contact the department to arrange a meeting.


NOTE: The purpose of the first meeting is to inform the auditee what the objectives of the audit are and what documentation and information the department will be expected to provide to the auditors. The auditee will also be asked if there are any concerns that they would like included in the audit.


2. The auditee may request the status of the audit at any time by calling the Internal Audit department at 7-2370.



3. Once the audit testing is complete, Internal Audit will arrange a meeting with the auditee to discuss the audit results.



4. Receive the draft audit report, and within two weeks, prepare written responses to any audit recommendations, and return the responses to Internal Audit.


NOTE: Copies of the final audit report, including auditee responses, are sent to the auditee, the president, the provost and senior vice president for academic and student affairs, the treasurer of the Board of Control, the secretary to the Board of Control, and all Board of Control members.


5. If the audit report contained any recommendations, three to six months after the audit report is issued, Internal Audit will contact the auditee to perform a follow-up.


NOTE: The follow-up is done to determine what actions have been taken to implement recommendations made in the audit report. A report of follow-up work will be sent to the president, the provost and senior vice president for academic and student affairs, the treasurer of the Board of Control, the secretary to the Board of Control, and all Board of Control members. Additional follow-ups will be conducted on any recommendations that have not been implemented.

Internal Audit also conducts comprehensive audits of centralized University functions, such as procurement card and petty cash. In the conduct of these types of audits, individuals may be contacted without prior notification if their transactions are selected for review.