Audit Process
What to Expect When Audited
In most cases, expect to receive notification when you or your department is to be audited. However there may be instances in which we conduct audits without prior notification, i.e., continuous auditing of transactions for anomalies, fraud allegation, etc. Expect to:
- Understand the audit's purpose and objective
- Provide your ideas or concerns regarding the audit
- To be treated with respect and courtesy
- To be asked for various financial and department documentation; some may be confidential
- Have confidential information to remain confidential
- To answer all questions honestly
- To receive a draft copy of the final audit report prior to its release
Preparing for an Audit
- Have all requested materials/records ready when requested
- Organize files so we minimize disruption of your office
- Provide complete files
- Please make yourself available during the time of the audit and communicate any planned absences
- Provide work space for auditors, if requested
The Audit Process
1
Planning
2
Notification
3
Opening Meeting
4
Preliminary Work and Planning
- The objectives of the operation and major processes
- The risks that could prevent objectives from being met
- The controls in place or should be in place to manage these risks
5
Fieldwork
6
Report Drafting
7
Closing Meeting
8
Management Response
- Not be a defense or justification as to why the observation noted occurred
- Be brief, explaining how you will ensure the observation does not reoccur, i.e., changes to policies or procedures
- Consider the audience or report recipients, i.e., President and Board of Trustees' Audit Committee
Responses are inserted into the report verbatim, including typos and grammatical errors. So please proofread and try not to be verbose. To ensure accountability, management responses should include the name of the person responsible for implementing the recommendation and the expected implementation or completion date.
We also request responses from one level above the department audited. The second or third level respondents should review the first level response for appropriateness and agreement. If the second/third level disagrees with the response or does not feel it's appropriate, they should contact the first level respondent to come to an agreement on the response. If the second/third level respondent agrees, the response may be as simple as "I concur."
9
Report Distribution