Preparing for an Audit

Preparing for an Audit

• Have all requested materials/records ready when requested.
• Organize files so we minimize disruption of your day.
• Provide complete files.
• Please make yourself available during the time of the audit and communicate any planned absences.
• Provide work space for auditors, if requested.

The Audit Process

The auditor will review any prior audits in your area and professional literature. The auditor will research applicable policies and statutes and prepare a basic audit plan to follow.

Step 2: Notification

Internal Audit Services will notify the appropriate department or departmental personnel regarding the upcoming audit and its purpose, at which time an opening meeting will be scheduled.

Step 3: 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.

Step 4: Preliminary Work and Planning

The core of the audit program is developed using knowledge and information obtained during this process. Through interviews with key personnel and walk-throughs of key processes, the auditor will gain an understanding of your operation. The auditor will be learning about:

• The objectives of the operation and major processes,
• The risks that could prevent objectives from being met, and
• What controls are in place or should be in place to manage these risks.

Based on this initial assessment of risks and controls, tests of controls will be developed.

Step 5: Fieldwork

This step includes the testing to be performed as well as follow-up interviews and walk-throughs with appropriate department personnel as necessary.

Step 6: Report Drafting

After the fieldwork is completed, a report is drafted. The report includes such areas as the objective and scope of the audit, relevant background, and the findings and recommendations for correction or improvement.

Step 7: Closing Meeting

This meeting is held with department management. Prior to the closing meeting, a draft report will be submitted to department management for their review. The audit report and management responses will be reviewed and discussed. This is the time for questions and clarifications. Also, department management should suggest any changes or correction to the draft audit report. Results of other audit procedures not discussed in the final report will be communicated at this meeting.

Step 8: Management Response

At the closing meeting, management will be requested to provide written responses to each audit recommendation. Management responses should include the name of the person responsible for implementing the recommendation and the expected implementation date.

Step 9: 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 College, the chair of the Board of Trustees, and members of the Board of Trustees Audit Committee.