Preparing for an Audit

The Internal Audit Process at Utah Valley University

Audit Schedule - At the beginning of each fiscal year, the Internal Audit Department prepares an Annual Audit Schedule. The schedule is developed by evaluating:

  • Risk to the University.
  • Previous audit coverage.
  • Present circumstances.
  • Audits mandated by policy.

The Audit Process

Planning

The auditor will review any prior audits in your area, relevant regulations and industry best practices. The auditor will research applicable policies and statutes and prepare a basic audit plan to follow. Internal Audit coordinates with audit area management in the planning of the audit so that areas of special concern may be incorporated into the scope of the audit.

Opening Meeting

This meeting will include management and any administrative personnel involved in the audit. The audit's purpose and objective will be discussed as well as the audit program. The audit program may be adjusted based upon information obtained during this meeting.

Test Work

Most of the auditing test work takes place in the audit office; therefore contact with the internal auditor may be minimal. An audit generally includes evaluations of internal controls, inquiries and tests to ensure compliance with established policies, procedures, laws, and regulations. This step includes the testing to be performed as well as follow-up interviews and walk-through with appropriate department personnel as necessary.

Report Drafting

After the test work is completed, a report is drafted. The report will address issues identified during the test work and recommendations in response to the issues.

Closing Meeting

A closing meeting is held to review the draft report. Any needed clarification of the facts and/or wording will be given at this meeting. This is the time for questions and clarifications. Also, department management should suggest any changes or corrections to the draft audit report. The department will be asked following this meeting to prepare responses to the audit recommendations.

Management Response

After the closing meeting, management will be requested to provide written responses to each audit recommendation. Management responses should be coordinated one level above the area being audited and include the name of the person responsible for implementing the recommendation and the expected implementation date. Once the responses have been received by Internal Audit they will be forwarded to the Vice President for approval and then incorporated into the text of the audit report.

Audit Report

After appropriate discussion with the responsible Vice President and President, the report is issued and distributed to the audited unit's administration and management, the executive management of the University, and members of the Board of Trustees Audit Committee.

Follow up Review

After an appropriate period, generally six months after an audit is issued, a follow-up review will be conducted to ensure that issues identified in the audit report have been resolved.