FIN 702: Scheduled Internal Audits
To explain the process for scheduled internal audits
Vice president for University Administration and General Counsel
University Audit and Advisory Services (University Audit) performs financial, operational, and compliance audits according to a planned audit schedule approved by the university president and the Arizona Board of Regents Audit Committee.
Departments are identified for audit on the basis of the assessed risk, considering factors such as revenue amount, cash handling, inventory control, and amount of disbursements. Audit areas included in the plan usually will be those with the highest combined assessed risk as determined by a formal risk assessment process.
Two to three weeks before the audit, the director of University Audit will send a notification memorandum to the provost of the university, the executive vice president and chief financial officer, and the responsible dean/vice president with copies to the other university officers identified in the ASU University Audit and Advisory Services Schedule of Audit Participants, Column A, below. The introductory memorandum should:
One to two weeks before the audit, University Audit will schedule an entrance conference with the department to be audited. Participants should include the university officers identified in the ASU University Audit and Advisory Services Schedule of Audit Participants, Column B, below. The dean/university officer may include other appropriate participants.
The purpose of the entrance conference is to:
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 also are performed, as appropriate.
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 the responsible university officers.
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.
A draft report is provided to the university officers identified in the ASU University Audit and Advisory Services Schedule of Audit Participants, Column C, below.
An exit conference is held with the university officers identified in the ASU University Audit and Advisory Services Schedule of Audit Participants, Column F, below. The draft report is reviewed to:
Responses to recommendations are prepared by the director of the program being audited, approved by the responsible dean, or, for nonacademic areas, the vice president or university officer to whom the director reports, and submitted to University Audit.
In general, responses should state whether agreement exists on the findings and recommendations, specifically state the changes that will be implemented, and provide target completion dates for implementation of the changes.
University Audit is available to provide departments with advice on responses.
Departmental responses and agreed-upon revisions are incorporated into the report before final distribution. The university officers identified in the ASU University Audit and Advisory Services Schedule of Audit Participants, Column G, below, receive the final report.
The final report is also distributed to ASU senior administration and the Arizona Board of Regents Audit Committee.
Questions about this policy should be addressed to the vice president for University Administration and General Counsel. Following is a chart that specifies which participants should attend which meetings
|ASU University Audit and Advisory Service|
Schedule of Audit Participants
|Director of program being audited||X||X||X||X||X||X||X|
|Dean/vice president/university officer (1)||X||X (2)||X||X||X||X|
|Audit liaison for responsible provost/VP||X||X||X||X||X||X|
|Provost of the University||X||X||X||X||X(3)||X|
|Director, ASU University Audit and Advisory Services||X||X||X||X||X||X||X|
|Associate vice president for Financial Services||X|
|Executive vice president and chief financial officer||X||X||X||X||X(3)||X|
|Vice president for University Administration and general counsel||X||X|
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