Internal Audit Who? What? When? How? Why? In brief . . . Opening Conference Presentation with Speaker Notes Internal Audit Who? What? When? How? Why? In brief . . .

Opening Conference Presentation with Speaker Notes Who are we? We are an organization that provides both traditional and non-traditional services We are an organization that provides both traditional and non-traditional services--we are a service organization first and foremost--by providing a wide range of services to all University departments and functions. I’ll cover our services in just a moment We are not outside auditors We are not outside auditors. As internal auditors, we share the same University goals and objectives as all areas of the University We are the constructive link between policy-making and operational levels of the University Through training, educational materials, and the audit process, we Communicate University policy Help you determine whether your established policies and procedures will enable you to accomplish your departmental goals and objectives Assist in implementing appropriate control activities, if necessary Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. We provide tools to help you identify opportunities for improvement. We also serve as an early warning system to identify risks Simply reviewing your department’s procedures from an internal control point of view can identify procedures of no value, duplications of effort, or missing controls. Staff may benefit from cash procedures or expenditures training. Risks are not just of a financial nature. Risks can be categorized as compliance, financial, operating, management, public, and publicity. For instance, a very large risk to the University would be bad publicity due to non-compliance--possibly resulting in loss of funding. We are an organization that provides both traditional and non-traditional services We are not outside auditors We are a constructive link between policy-making and operational levels of the University

Who? (continued) University organization chart Opening Conference Presentation with Speaker Notes Who? (continued) University organization chart

Who? (continued) Representing over 100 years of combined experience Opening Conference Presentation with Speaker Notes Who? (continued) Representing over 100 years of combined experience

Who? (continued) In the following areas Governmental cost accounting Opening Conference Presentation with Speaker Notes Who? (continued) In the following areas Auditing Financial Operational Information systems Accounting Governmental Public and private Fraud detection Reporting Management reporting Financial reporting Governmental cost accounting

Opening Conference Presentation with Speaker Notes What do we do? We provide both traditional audits and non-traditional services designed to help define and/or meet your organization’s goals and objectives Our less traditional services include: Educational sessions Training materials Special projects

What? (continued) We perform traditional audits Opening Conference Presentation with Speaker Notes What? (continued) We perform traditional audits By evaluating the adequacy and effectiveness of the internal controls And the quality of performance in carrying out assigned responsibilities

What? (continued) What is a traditional audit? Opening Conference Presentation with Speaker Notes What? (continued) What is a traditional audit? Review the reliability and integrity of financial and operating information Review the fiscal, operational, and administrative operations Review the systems established to ensure compliance with policies, plans, procedures, laws, and regulations that could significantly impact operations

What? (continued) What is a traditional audit? (cont.) Opening Conference Presentation with Speaker Notes What? (continued) What is a traditional audit? (cont.) Evaluate the effectiveness and efficiency with which resources are employed Evaluate the accomplishment of established objectives and goals

When do we do it? A flexible audit schedule is prepared considering Opening Conference Presentation with Speaker Notes When do we do it? A flexible audit schedule is prepared considering Board of Regents requirements Requests from vice presidents and key administrators A risk assessment process that evaluates departments based on the resources under their control and the degree of change the department has experienced in recent years

Opening Conference Presentation with Speaker Notes When? (continued) A flexible audit schedule is prepared considering (cont.) The Internal Audit Department’s knowledge of existing operations, internal controls, and changes that are planned or in process for various financial systems and procedures Training and expertise of the professional audit staff Resources available to the Internal Audit Department

Opening Conference Presentation with Speaker Notes How do we do it? We familiarize our clients with the internal audit function (prior to engagement) by Providing a summary of our own policies and procedures Providing an outline (and video) of the concept of internal controls Providing educational assistance, if necessary

How? (continued) We obtain pre-opening conference materials Opening Conference Presentation with Speaker Notes How? (continued) We obtain pre-opening conference materials Initial response to internal control outline Organization charts Departmental policies and procedures Any other documents that would help familiarize us with your organization Copies of any external audits or other internal reviews that have been conducted

We recommend involving all appropriate faculty or staff members Opening Conference Presentation with Speaker Notes How? (continued) We hold an opening conference to Present our department Discuss your departmental internal controls Review your pre-opening conference materials We recommend involving all appropriate faculty or staff members

How? (continued) Our activities include Opening Conference Presentation with Speaker Notes How? (continued) Our activities include Interviewing key staff and management Observing established procedures Examining suporting documentation and evidential materials Documenting organizational control activities Performing analytical reviews Compiling our own supporting workpapers

How? (continued) Preparing the audit report and recommendations Opening Conference Presentation with Speaker Notes How? (continued) Our activities include (cont.) Preparing the audit report and recommendations Holding a closing conference to discuss the audit and obtain your responses to the recommendations Issuing the final audit report including your responses Performing a followup review in six months

Why have an Internal Audit Department? Opening Conference Presentation with Speaker Notes Why have an Internal Audit Department? Internal Audit’s role as consultants at the University includes (constructive link): Answer your questions, help solve problems--whether they are related to compliance issues, operational issues, or financial issues We are a constructive link between policy-making and operational levels of the University Early warning system to identify financial and other risks Identify opportunities for fiscal and operational improvement

Opening Conference Presentation with Speaker Notes Internal Audit is in the Park Building - Room 407 - 201 Presidents Circle Rm 407 - Salt Lake City, Utah 84112-9021 Website (Who’s Who link for phone numbers) http://web.utah.edu/Internal_Audit