Audit Processes

What to expect in an assurance or advisory engagement?

IA performs professionally conducted engagements that rely on cooperation, interaction, and open communication between management and the audit staff for success. IA works with management to understand its goals and objectives, analyze risks that might inhibit reaching those goals and objectives, and evaluate controls designed to aid management in managing those risks.

An engagement consists of four phases.

Planning Phase

• Announcement Letter: Ensures management is aware of upcoming engagement and seeks management input.
• Risk Assessment: Consists of preliminary review of risks and controls by interviewing department management and staff and reviewing policies and procedures.
• Engagement Letter: Informs management of the scope and objectives of the engagement and identifies the engagement team and client contact.                                              

Fieldwork Phase

Fieldwork includes testing and evaluation of internal controls by interviews, observations, and analytical reviews.  Routine updates are provided periodically to communicate progress and share potential issues(the expectation is that the client will review the potential issues and provide feedback to the engagement team). Fieldwork normally takes one to three months, depending on the size of the operation, scope, and the staffing assigned. Our goal is to minimize disruption to the client's operations and provide value in helping auditees meet their goals and objectives.

Reporting Phase

A report is drafted and shared with client management. Once the draft report is validated and reviewed by the client, management responses are collected and included in the final report (required for assurance and investigative services, optional for advisory). An exit conference may be scheduled with the management team to ensure all parties involved are aware of and understand the conclusions and planned management actions. A copy of the final report is transmitted to the president, the vice president(s), the auditee, the Board of Regent’s associate vice chancellor for Internal Audit, and other pertinent individuals.

At the conclusion of the engagement, the client will be given the opportunity to provide feedback through an electronic survey. 

Follow-Up Phase (Assurance)

IA will follow up on management responses to material, significant, and moderate observations.