Internal Audit

Audit Process

The following provides an overview of what to expect during a review.

1. An engagement letter is sent.

This letter, typically in the form of an e-memo, describes the general objectives, the projected time frame, and the information your department may need to supply.

2. An entrance conference is scheduled.

The director and auditor-in-charge meet with the department head to discuss the department, system, or process to be reviewed, its organization, available resources, and other pertinent information. You are encouraged to present questions or concerns.

3. Planning work is completed.

The auditors become familiar with operations by talking to key personnel and reviewing various sources of written information.

4. Fieldwork is conducted.

This phase includes testing internal controls and transactions and completing other procedures necessary to accomplish the objectives of the engagement.

5. Draft findings are shared.

A draft of the audit findings is emailed to management for review.

6. An exit conference is scheduled.

The director and auditor-in-charge meet with the department head to discuss the draft audit findings. You will be given the opportunity to comment and suggest changes.

7. Final responses to the audit findings and recommendations are submitted.

You will have one week to send an official response to each of the audit findings.

8. A draft report is prepared.

A draft of the final report is prepared and emailed to management for review. It includes a draft overview of the department.

9. The final report is issued.

The final report includes your responses and is distributed to all relevant parties.

10. Audit Feedback

As part of our office's quality assurance program, we ask you to complete an exit survey to comment on your experience. This feedback is used to improve our procedures.

11. Follow up review.

Our office monitors corrective actions on a quarterly basis. If necessary, a follow up review will be conducted approximately 12 to 18 months after the issuance of the final report to verify the resolution of the findings.

A final note:

The audit process works best when we have a shared working relationship. We hope you will extend this relationship beyond a particular engagement. Through the audit process, we develop an understanding of your operation and are available to consult on organizational or operational matters.