Financial Services Manual (FIN)

Effective: 9/16/1992

Revised: 11/26/2007

FIN 703: Ad Hoc, Special Purpose Audits and Reviews

Purpose

To explain the process for ad hoc, special purpose audits and reviews

Source

University Administration and Legal Affairs

Policy

University Audit and Advisory Services (University Audit) performs ad hoc, special purpose audits and reviews as directed by the vice president for University Administration and General Counsel, in response to requests from the vice presidents. University Audit is available to assist departments with a variety of projects. Departments request the assistance of University Audit through their vice president, who then requests assistance from the vice president for University Administration and General Counsel.

The vice president for University Administration and General Counsel will submit each request for a special audit or review to the university’s Executive Committee. The Executive Committee will determine whether the request will be submitted to University Audit.

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Introductory Memorandum

The need for a notification memorandum will be determined by University Audit after consultation with the responsible vice president.

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Entrance Conference

One to two weeks before the audit, an entrance conference will be scheduled. Participants should include the university officers identified in the ASU University Audit and Advisory Services Schedule of Audit Participants, Column B (see FIN 702, “Scheduled Internal Audits”). The dean/university officer may include other appropriate participants. A less formal procedure may be followed, if circumstances such as timeframe or sensitivity of subject matter warrant it.

The purpose of the entrance conference is to:

1. discuss the preliminary audit objectives and determine whether particular areas of concern should be addressed;
2. introduce the University Audit staff members performing the audit;
3. identify the program contact person with whom University Audit can work in performing the audit;

   and

4. review the final reporting process.

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Fieldwork

University Audit will perform fieldwork in the department being reviewed. University Audit will attempt to be unintrusive; however, department staff will usually be asked to help collect documents for review.

During the course of the audits, University Audit will interview knowledgeable personnel, review policies and procedures manuals maintained by the department, and review documents related to department operations. Additional audit procedures will also be performed, as appropriate.

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Draft Report

University Audit will issue a written draft report of the results of ad hoc audits and reviews.

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Recommendations

The audit reports will include recommendations to improve financial and management controls, as appropriate. University Audit will discuss its recommendations at an exit conference with responsible university officials.

The audited department is responsible for implementing the recommendations. University Audit will review the implementation of management recommendations as part of the quarterly report on internal audit status.

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Exit Conference

An exit conference is held with the university officers identified in the ASU University Audit and Advisory Services Schedule of Audit Participants, Column F (see FIN 702, “Scheduled Internal Audits”). A less formal procedure may be followed, if circumstances such as timeframe or sensitivity of subject matter warrant it. The draft report is reviewed to:

1. confirm the correctness of the factual data presented;
2. determine whether all pertinent information has been considered;
3. answer questions about the report, recommendations, or findings;
4. discuss revisions/changes proposed by the dean or university officer;

   and

5. discuss the timing of the preparation of departmental responses to recommendations, if not already completed.

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Final Report Distribution

The report distribution is decided by University Audit, after consultation with the requesting vice president.

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Questions about this Policy

Questions about this policy should be addressed to the vice president for University Administration and General Counsel.

Cross-Reference

For more information regarding audits, see FIN 702, “Scheduled Internal Audits.”

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