1. Internal Audit Who? What? When? How? Why? In brief . . .
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Internal Audit
Who?
What?
When?
How?
Why?
In brief . . .

2. 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

3. Who? (continued) University organization chart
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Who? (continued)
University organization chart

4. Who? (continued) Representing over 100 years of combined experience
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Who? (continued)
Representing over 100 years of combined experience

5. Who? (continued) In the following areas Governmental cost accounting
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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

6. 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

7. What? (continued) We perform traditional audits
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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

8. What? (continued) What is a traditional audit?
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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

9. What? (continued) What is a traditional audit? (cont.)
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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

10. When do we do it? A flexible audit schedule is prepared considering
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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

11. 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

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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

13. How? (continued) We obtain pre-opening conference materials
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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

14. We recommend involving all appropriate faculty or staff members
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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

15. How? (continued) Our activities include
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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

16. How? (continued) Preparing the audit report and recommendations
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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

17. Why have an Internal Audit Department?
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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

18. Opening Conference Presentation with Speaker Notes
Internal Audit is in the Park Building - Room Presidents Circle Rm Salt Lake City, Utah Website (Who’s Who link for phone numbers)