1. Audit Committee Workshop
David Pulsipher, CIA, CFE
Director of Audit and Financial Services
Utah System of Higher Education

5. Objectives Review audit committee responsibilities
Discuss risk assessment process
Discuss audit committee involvement in audit process

6. Audit Committee Responsibilities
Internal Audit Act (63I-5)
Board of Regent policies (R565, R567)
International Standards for the Professional Practice of Internal Auditing

8. Audit Committee Chair Responsibilities
Organize committee meetings
Communicate with IA director
Discuss concerns with board and management
Report annually to the Regent Audit Subcommittee

9. Audit Committee Responsibilities
Establish audit charter and audit policies
Oversee functional reporting line for IA director
Review:
Adequacy of IA resources
External audit reports
Anonymous ethics complaints

10. Management Responsibilities
Oversee administrative reporting line for IA director
Ensure staff cooperation with auditors
Encourage constructive “tone at the top”

11. Risk Assessment
“The Trustee Audit Committee shall review information regarding the institution’s control environment, means of communicating standards of conduct, and practices with respect to risk assessment and risk management.” -Regent policy R

14. Risk Assessment (group discussion)
How does your institution assess risk?
What risks exist in higher ed today that did not exist 10 years ago?
What risks might exist in higher ed 10 years from today?

15. Risk Assessment Best Practices
[Institutions] need independent audit committees with deeper financial expertise
Audit committees need to see the [institution] through the eyes of others
A strong and objective internal audit function must be a priority
Audit committees must be attentive to all aspects of the external audit process
Source: Viewpoints from the Audit Committee Leadership Summit (April 6, 2007)

16. Audit Committee Role in Audit Process (group discussion)
What does your institution do to mitigate current and future risks?
What does your audit committee do to minimize fraud?
How often does your audit committee discuss risk mitigation and fraud:
Internal audit director?
Management?

17. Conclusion -Richard Chambers (CEO of IIA)
“New audit committee members are sometimes inclined to think of internal auditors in a 20th century context — as bean- counters who are focused on the past (hindsight). However, 21st century internal auditors are equipped to provide insight and advice on risk management and control in the company. They also are increasingly able offer foresight — perspectives on strategic and business challenges the company could face if key risks are not effectively identified and managed.”
-Richard Chambers (CEO of IIA)

18. Questions? David Pulsipher, CIA, CFE
Director of Audit and Financial Services
This concludes this introduction to the role of institution internal audit directors and trustee audit committee responsibilities. I would be happy to meet individually with your audit committee, if needed, to further elaborate on topics discussed during this introduction.