How to Prepare for an Audit

Internal Audit Process

Although every audit project is unique, the audit process is similar and usually consists of four stages: Preliminary Review, Fieldwork, Report, and Closure. It is recognized that an audit results in a certain amount of time being diverted from an auditee’s usual routine. Our objective is to perform the audit efficiently and effectively, minimizing the disruption of that routine.

Notifying the Auditee (Preliminary Review)

University administrators, who are responsible for coordinating the implementation of recommendations, if any, are notified before the audit begins. An opening conference is held with the auditee to define the scope of the audit and identify any areas of concern noted by the auditee. Unannounced audits are initiated where appropriate.

Performing the Audit (Fieldwork) and Finalizing the Audit Report

Audit work is performed in accordance with the Institute of Internal Auditors’ Standards and code of ethics adopted by the Internal Audit Office. Audit concerns are discussed with the auditee as they are identified.

University administrators, who have the responsibility for areas audited, receive a draft of the audit report. An exit conference is scheduled to review the report and respond to any questions the administrators might have prior to issuance of the final report.

Report Issuance

The Executive Vice President and Treasurer issues the audit report with a cover letter requesting action if recommendations are made. Otherwise, the audit is closed upon issuance of the report.

Closure

The final report will indicate if a formal response is needed. After assurance that all issues have been satisfactorily addressed, the Executive Vice President and Treasurer will close the audit. Upon closure of the audit, the President and members of the Audit and Insurance Committee receive the audit report and the closure recommendation document, if applicable, containing the actions relative to any recommendations.