The stage in which Internal Audit reviews: rules, regulation and policies; gathers information and documentation; and through discussions with personnel obtains an understanding about the audit area.
Internal Audit will develop the scope, objectives and the Audit Program based on pre-audit planning, and input from college officials’ and audit management.
The Entrance Conference is the where the internal auditor and upper management meet with officials of the audited area to discuss the scope, objectives, and any concerns.
The Auditor will gather information at the audited area to determine whether the scope, objectives, and approach needs to be adjusted for existing conditions.
The Auditor will document and evaluate the strengths, weaknesses, and risks based upon a survey of conditions. With Internal Audit Management approval, the audit program/approach will be adjusted as deemed necessary.
The Auditors will conduct audit steps, documenting the purpose, analysis, and conclusions for work performed. Fieldwork involves: discussion with the auditable area’s personnel; examining transactions, documents and records; and performing tests to enable the auditor to gain an understanding of the audited areas activities. Areas identified in which some improvement could be possible are documented on a Management Point sheet.
The Auditors discuss their fieldwork with the auditable area’s management. Any areas in which improvements were noted are verbally discussed with management. Any additional comments are noted. This Exit Conference signals the end of the fieldwork portion of the audit.
During the review by Internal Audit Management, any potential Management Points will be discussed with the Auditor who conducted the work for the step in question. The Audit Manager will make a final recommendation on any potential Management Points. After the review, the Project Manager is notified of the reviewed Management Points who will then submit them to the appropriate auditable area for the auditable area’s review and comments.
The Auditors and Internal Audit Management will determine whether or not a Management Point should be included as a reportable item. After reportable items have been identified, a draft of the report is prepared, reviewed by Audit Management, and distributed to colleges for their official response and implementation dates. Responses are inserted upon receipt. The Final Report is distributed per the Internal Audit Director’s instructions.
The Audit Department annually performs a follow-up review on all internal audit report findings within the previous twelve months, unless a more timely re-audit is deemed necessary.