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Internal Audit Awareness. Note to presenters:  Different slides in this presentation may appeal to different audiences including board members, senior.

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Presentation on theme: "Internal Audit Awareness. Note to presenters:  Different slides in this presentation may appeal to different audiences including board members, senior."— Presentation transcript:

1 Internal Audit Awareness

2 Note to presenters:  Different slides in this presentation may appeal to different audiences including board members, senior leadership, faculty and staff, and students.  Please feel free to utilize the slides that best meet the needs of your audience. It is not anticipated that all slides will be needed for all audiences.  In addition to the information on the slides, detailed information has been provided in the Notes section of many slides to assist in presenting.

3 Presentation Areas  Internal Audit Background  How Internal Auditors Work  Audit Process

4 Internal Audit Background

5 Why is there Internal Audit?  Regulations  Federal (reference any applicable Federal requirements such as Federal Sentencing Guidelines)  State (reference any applicable general statutes or other state requirements)  Other guidance (system policies, etc.)  To protect the organization

6 Accounting vs. Internal Auditing AccountingInternal Auditing Area of Focus Financial analysis Transaction processing Budgeting Record keeping Determining accuracy of financial reporting Internal Controls Compliance Effectiveness and efficiency of operations Governance structure Risk management Method of Working Transaction processing Cyclical financial reporting and budgeting Project based May include committee work and ongoing risk assessments CertificationsCPA, CMA, etc.CPA, CIA, CISA, CFE, etc.

7 Types of Auditors External Auditors Hired by an organization Often financial statement or IT focus 25,000’ view Produce a report with an opinion Internal Auditors Regulatory Auditors From a government agency or grantor May be called auditors, inspectors, compliance officers Ensure compliance with regulations Report, score card, or dashboard Work for the organization Risk-based audit plan Variety of audits based on industry Report or memo with recommendations

8 What is Internal Auditing? Independent and objective Value-added Improves operations Accomplishes objectives Improves effectiveness and efficiencies

9 The IIA Standards  Independence  Professional Proficiency  Scope  Performance of Audit  Management  Code of Ethics

10 Internal Audit at Institution  Mission  Include Mission  Charter  Background information such as approved (annually) by the board, aligns with the Standards, part of the Quality Assurance Review

11 Internal Audit Structure at Institution Board of Trustees Audit Committee Chief Audit Executive/IA Director (Name, certifications) President/Chancellor or Other Administrator Auditor (Name, certifications) Auditor (Name, certifications) Auditor (Name, certifications)

12 How Internal Auditors Work

13 Working with Internal Audit  Traditional vs. "Modern” Internal Auditors  Evolution of Internal Audit  Audit Engagements  Different Types of Engagements  Compliance Audits  Operational Audits  Consultations  Investigations

14 Risk-based Auditing  Goal:  To identify areas in the university that have significant risks and to evaluate those areas to determine if those risks are being adequately managed.  Risk Assessments  What is risk?  Factors affecting risk

15 Examples of Controls Preventive ControlsDetective Controls Segregation of dutiesException reports SupervisionReconciliations Security of assetsPerformance reviews Reading and understanding current policies and procedures. Annual physical inventory counts

16 Audit Process

17 Audit Process (Update as needed) Planning Preliminary research Entrance Meeting Process discussions Information gathering Identification of scope items Fieldwork Interviews Process reviews Document reviews Testing and verification Discussion of audit issues/findings Reporting Develop draft audit report Exit meeting Management responses Final report distribution CONTINUOUS COMMUNICATION

18 Common Audit Findings Not Understanding Requirements Lack of Segregation of Duties Lack of Training Lack of Communication Lack of Awareness Lack of Compliance

19 Positive Impacts of Audits Priority management Practical advice Comprehensive view of risk Institution- Wide Fraud prevention Improve efficiency and compliance Strong support Department- Wide

20 Hotline Information  Insert your university’s hotline information here.

21 Contacting Internal Audit  If you want to contact us, we are available via…  Phone (xxx – xxx – xxx)  Fax (xxx – xxx – xxx)   Website (internalaudit.yourschool.edu)  Or if you would like to visit us, we are located at…

22 Thank You!


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