What is an Audit?
An “audit" is traditionally defined as an examination of records or financial accounts
to check their accuracy. In reality, the concept of auditing is much broader and
deeper. It is common for an audit to extend beyond financial considerations to include
operational processes. Therefore, an audit may best be defined as an appraisal of
organizational processes in light of the goals and objectives of that organization
and/or the goals and objectives of an external group (such as a regulatory agency).
The Office of Internal Audit operates with limited resources and must constantly evaluate the most effective and efficient use of those resources. Resources are deployed pursuant to an annual audit plan. The annual audit plan is developed through a systematic and disciplined approach, with the input of university officials and the university Board of Trustees.
Types of Audits
Internal Audits
Internal audits primarily serve the interests of the organization being audited and are usually performed by employees of the organization. These interests include compliance with external regulations, laws, and expectations, as well as goals and objectives that are internal to the organization.
Internal audits include risk-based audits, required audits, special projects, and follow-up audits.
- Risk-Based: Audits scheduled based on a systematic risk assessment of all operational areas of the university.
- Required: Audits required to ensure compliance with laws, rules, or regulations.
- Special Projects: Audits performed at the request of the Board of Trustees or management when circumstances indicate a need.
- Follow-ups: Audits focused on the status of issues originating from the prior internal audit of the same activity.
External Audits
The goal of external audits is to report on the accuracy of the organization's financial reports and/or its compliance with external regulations and laws. These audits are conducted by individuals or groups not employed by the university but engaged by the entity requiring the audit.
The university is subject to numerous external audits each year. It is important for university personnel to contact us when external audits are scheduled.
Administrative/Consultative Reviews (non-audit projects)
These reviews typically focus on narrowly defined issues or activities and are often performed at the request of the responsible manager or director. The results are usually reported only to the responsible managers or university officials. Please contact us to discuss a possible project with Internal Audit.