FIN 701: ASU University Audit and Advisory Services Charter
To define the purpose/mission, authority, and responsibility of ASU University Audit and Advisory Services
University Administration and Legal Affairs
The University Audit and Advisory Services (University Audit) Department is an independent appraisal function to examine and evaluate university activities as a service to university management personnel at all levels. University Audit’s mission is to provide objective, independent assurance and consulting services that are responsive to the university stakeholders. It assists the university to accomplish its mission by bringing a disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
University Audit is authorized full, free, and unrestricted access to the university’s functions, records (irrespective of medium), property, and personnel relevant to any review. Documents and information given to internal auditors during a review are handled in at least the same prudent manner as by those employees normally accountable for them. Access is also granted to the records of any component unit (e.g., ASU Foundation) in the possession of a university department or employee that relates to the department, area, or program being audited.
The director of University Audit and Advisory Services shall confer with the Audit Committee of the Board of Regents at least annually, outside the presence of university officials, on any subject germane to University Audit’s area of responsibility. In addition, if the circumstances ever warrant such action, the director of University Audit and Advisory Services may communicate directly with the chair of the Audit Committee.
University Audit will primarily follow the standards for the professional practice of internal auditing as established by the Institute of Internal Auditors. However, depending upon circumstances, some engagements will be performed pursuant to professional guidance issued by the American Institute of Certified Public Accountants. Such guidance covers audits of financial statements and attestation engagements. In addition, University Audit will adhere to the policies and procedures included in its Operating Procedures Manual.
University Audit is responsible to the university’s president under the operational supervision of the vice president of University Administration and General Counsel.
University Audit provides the following documents to the Arizona Board of Regents (ABOR) Audit Committee:
The director of University Audit and Advisory Services attends the ABOR Audit Committee’s quarterly public meetings to discuss audit reports issued during the previous quarter, the status of the current annual audit plan, and other matters of interest to the Audit Committee. Also, the director of University Audit and Advisory Services and the Audit Committee can meet privately regarding pertinent matters. University Audit will coordinate as necessary and appropriate with ABOR’s Central Office auditors and the university system auditors regarding risk assessment to plan audit coverage in order to meet ASU and system-wide needs.
All University Audit activities, such as audit selection, scope, procedures, timing, and report content, will remain free of influence by any element in the university in order to maintain an independent and objective perspective. At least once annually, the director of University Audit and Advisory Services will confer with the Audit Committee, outside the presence of university officials, to discuss any germane subject. Furthermore, if circumstances warrant, the director of University Audit and Advisory Services may communicate directly with the chair of the Audit Committee.
Internal auditors will not have any direct operational responsibility or authority over any of the activities that they review. They will not develop nor install systems or procedures, prepare records, nor engage in other activities that would normally be reviewed by the internal auditors. Recommendations on standards of control to apply to a specific activity may be included in the written report of audit findings and opinions, which is given to management for review and implementation.
University Audit’s coverage will encompass reviews of any and all management operations, including the following:
The general responsibilities of University Audit include, but are not limited to, conducting reviews of university departments, programs, and control systems to determine whether they are effectively contributing to the university’s achievement of its objectives and represent a high standard of administrative practice.
These responsibilities include:
In addition, the director of University Audit and Advisory Services at ASU, through the execution of the annual audit plan, is responsible for the periodic review of the internal control environment to determine whether adequate internal controls exist and are operating effectively. The director of University Audit and Advisory Services will also include observations and recommendations for improved internal controls in the audit reports submitted to the Audit Committee and university administration for appropriate action.
For information on external and internal audit coordination, see FIN 205–01, “Audit Liaison.”
For information on audit procedures and protocol, see:
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