The Audit Process
What you can expect....
The head of the department or the area being audited is informed that an audit has been scheduled. An entrance conference is held to provide the opportunity for the audit team and the department to discuss the purpose and objectives of the audit. This is also the time for the department or area to discuss their concerns and raise issues that the Internal Auditing Department can consider including in the scope of the audit.
Since every audit is unique, the audit procedures followed during fieldwork depend on the nature of the audit service. During a typical operational audit, the internal auditor performs an evaluation of the department's systems of internal control and tests the compliance with these controls by tracing a sample of transactions through the operation's process. Key personnel are interviewed and office manuals and policies are reviewed. Progress meetings are held throughout the audit process to keep the administrator advised of any significant findings and to resolve any arising issues.
After the conclusion of fieldwork a preliminary exit conference is held to discuss the audit findings and the suggested recommendations. After this meeting, the auditor completes workpaper documentation and prepares a draft of the audit report. This draft is submitted to the department for review, and then a final exit meeting is scheduled to discuss the report and the findings. Internal Auditing requests that the administrator provide a written response to each recommendation, to state whether or not the department agrees with the recommendations, the plans for implementation, including a timeline, and any other information to explain the issues.
The Internal Auditing Department publishes the final audit report with the management responses. The report is addressed to the President of the institution with copies of the report distributed to the Board of Governor’s of the Colorado State University System Audit Committee, the department's administrator, Director, Chair and Dean, the University's Vice President for administrative services, University Controller and audit liaison, the state auditor, and any other officials deemed appropriate by the Internal Auditing Department.
The Internal Auditing Department schedules follow-up audits to coincide with the implementation dates included in the area's responses to the audit recommendations. Follow-up audits continue based on the target implementation dates of all recommendations until they are implemented or otherwise closed.