The auditor will review any prior audits in your area and professional literature. The auditor will research applicable policies and statutes and prepare a basic audit program to follow.
The auditor will notify the appropriate department or departmental personnel regarding the upcoming audit and its purpose, at which time an entrance conference will be scheduled.
The entrance conference will include management and any administrative personnel involved in the audit. The audit's purpose and objectives will be discussed as well as the audit program. The audit program may be adjusted based on the information obtained during this meeting.
Preliminary Work and Planning
The audit program is further developed using knowledge and information obtained during this process. The auditor will gain an understanding of the operation from responses from the internal control questionnaire, interviews with key personnel,
and walk-throughs of key processes. Based on this initial assessment of risks and controls, tests to determine whether controls are operating effectively will be developed.
This step includes the testing to be performed as well as follow-up interviews with appropriate department personnel as necessary.
After the fieldwork is completed, a report is drafted. The report includes such areas as the objective and scope of the audit, relevant background, and the findings and recommendations for correction or improvement.
After the draft report is submitted for review, a meeting is scheduled with department management to discuss the draft audit report. This is a time for questions and clarifications. Department management should suggest any changes or corrections to the draft audit report. Results of other audit procedures not discussed in the report will be communicated.
Management will be requested to provide written responses to each audit recommendation which can include personnel responsible for implementation and expected implementation dates.
Final Audit Report Distribution
The final audit report with management responses is distributed to the President, Board of Regents Audit Committee, the appropriate Dean and/or Division Vice-President, and to the department personnel involved in the audit.
A follow up review to conclude whether or not corrective actions were implemented will be conducted approximately one year after the audit report is issued.