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© Oregon University System, 2008
Areas selected for audit are on an audit plan. The plan is based upon input from university and system administration, State Board of Higher Education, and the Internal Audit staff.
Factors that are considered in selecting units to be audited include:
First, you will receive a letter to inform you of an upcoming audit. The auditor will send you a preliminary checklist. This is a list of documents (e.g. organization charts, financial statements) that will help the auditor learn about your unit before planning the audit. During the planning stages, the auditor will also ask you to identify potential audit objectives that would add value to your organization.
At the beginning of each audit, a meeting is scheduled with the unit head and other appropriate personnel to discuss the audit scope and objectives, time schedule, and audit review process. Any concerns raised by the unit personnel are also discussed.
After the entrance conference, the auditor will begin fieldwork. Fieldwork involves interviewing staff, reviewing policies and procedures, and performing detailed tests.
The emphasis of the evaluation is to determine if there are adequate control systems and whether the systems are functioning as intended. The controls are measured against system, state, and federal policies and procedures, as well as, generally accepted accounting principles. Areas of deficiency and potential recommendations are discussed with the appropriate staff and are documented in the audit work papers. Auditors will also discuss control strengths identified within your unit.
Throughout the process, the auditor will keep you informed. You will have an opportunity to discuss and confirm the potential problems found and possible solutions.
A meeting is scheduled with the same individuals who attended the entrance conference. At the exit conference, a rough draft of the audit report is reviewed so that all of the parties understand the nature of the recommendations and agree upon the possible solutions to any problem areas. Any misunderstandings or possible misstatements contained in the report are identified and resolved. Any deficiencies identified during the audit, which were not significant enough to be included in the audit report, but still represent a potential risk, are also discussed.
After the exit conference, a draft of the audit report is finalized. The manager of the activity or department receiving the internal audit report will respond within 30 days. This response will indicate what actions were taken or are planned in regard to the specific findings and recommendations in the internal audit report. If appropriate, a timetable for the anticipated completion of these actions will be included.
The unit's responses are added and any noted corrections are made to the audit report. The final audit report is printed and bound in booklet format by the Internal Audit Division. The report is distributed to the appropriate university officials.
There will be a follow-up review approximately 6 to 12 months after the audit. The purpose of the follow-up is to verify that you have implemented the agreed-upon corrective actions. The auditor will interview staff, perform tests, or review new procedures. The auditor will issue a follow-up memo indicating whether further actions are necessary. If further corrective action is required, you will need to identify what future corrective action is to be taken. Otherwise, you're all done.