THE AUDIT PROCESS
Your involvement at every stage of the audit process is extremely important. The process works best when management and the internal auditor have a solid and constructive working relationship based on clear and continuing communication. Although every audit project is unique, the audit process is similar for most engagements and normally consists of the following stages:
- Notification & Planning - First, you will
receive an engagement letter which is notification of the upcoming audit. The auditor will
may send you
a preliminary checklist which is a list of documents (e.g. organization
charts, etc.) that will help the auditor learn about your unit before
planning the audit. During the planning stages, the auditor may ask
you to identify potential audit objectives that would add value to
your unit. After reviewing the information, the auditor will develop a
planning document, create an audit program, and schedule the opening meeting.
- Entrance Conference - The Entrance
Conference is the very first meeting of the audit process involving the
internal auditor, upper management, and other members of the department
being reviewed. Objectives of the review and completion dates are
discussed as well as concerns that management may have.
- Preliminary Survey and Internal Control
Review - This is the most time consuming stage of the audit and
includes gathering information about your processes and reviewing and
evaluating the existing internal control structure.
- Fieldwork - Fieldwork involves
performing tests and examining transactions, documents, and records. Once
fieldwork work is completed, a general update is given to management before
any reports are issued.
- Draft Audit Report - You will receive a draft written report 4 weeks after the close of the fieldwork process that includes an overall opinion, audit results, recommendations, and management actions to be taken. Internal Audit solicits comments and suggestions from management prior to issuing the final report.
- Management Response - Your response to audit recommendations is due 10 days after receiving the draft report. Then if necessary, a formal Exit Conference will be given to further discuss any issues. Once all parties are in agreement with the contents, a final report along with management responses will be issued to the applicable Executive Staff, President, and University System Office Internal Audit (USG OIA).
- Follow-Up - Within a reasonable time of the final report, Internal Audit will perform a follow-up review to verify the resolution of the audit recommendations. Quarterly updates of the results are reviewed by GPC Internal Audit, Executive Staff, President and sent the USG OIA.