Department of Treasury Services

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Texas AM University Division of Student
Affairs What To Expect From An Internal
Audit May 2, 2005
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Internal Audits Responsibility

• Develop an annual audit plan based upon a
  system-wide risk assessment process
• Conduct audits in support of the plan
• Investigate fraud or fraudulent actions
• Report results to the Board of Regents, the
  Chancellor, and the Chief Executive Officers
  and
• Coordinate audit efforts with external and state
  auditors

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Audit Selection

• Auditable Units

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Typical Auditable Units

• Academic Colleges

• Business Functions

• Information Technology

• Human Resources

• Auxiliary Enterprises

• Student Financial Aid

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Audit Selection

• Auditable Units
• Risk Factors

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Risk FactorsAnalysis of Likelihood and Impact

• Budget
• Prior Audit Results
• Complexity
• Change In Mission and/or Management
• Management Interest

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Audit Selection

• Auditable Units
• Risk Factors
• Rankings and Selections
• Annual Audit Plan

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Annual Audit Plan

• List of Proposed Audits is Provided to CEOs for
  feedback
• Committee on Audit Provides Feedback
• Audit Plan Approved by the BOR
• http//sago.tamu.edu/iaudit/

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Auditing Guidelines

• The Institute of Internal Auditors Standards for
  the Professional Practice of Internal Auditing
• United States General Accounting Office
  Government Auditing Standards
• Committee of Sponsoring Organizations of the
  Treadway Commission Internal Control Integrated
  Framework
• System Policy Regulation Manual
• University Rules Standard Administrative
  Procedures

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Audit Process
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Audit Process

• Entrance Conference
• Risk Assessment
• Audit Program
• End of Planning Meeting
• Complete Fieldwork
• End of Fieldwork Meeting
• Draft Report

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Ongoing Communication with Management

• Email Notification
• Advance Agendas
• Status Meetings
• Continuous Dialogue
• End of Fieldwork Meeting
• Minimize Surprises

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Audit Process

• Entrance Conference
• Risk Assessment
• Audit Program
• End of Planning Meeting
• Complete Fieldwork
• End of Fieldwork Meeting
• Draft Report

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Reporting Process

• Disposition of minor observations.
• An ECD (Exit Conference Draft) containing all
  significant observations is issued for review by
  the client. (5-10 working day turnaround)
• Changes are made to the ECD, and a Draft Report
  is prepared.
• The Draft Report is sent out for official
  management responses to the observations. (30
  calendar day turnaround)
• Final Reports, including management responses,
  are issued on a quarterly basis to the Board of
  Regents.

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Common Themes From Recent Audits

• Information Data Security
• Human Resource Issues
• Cash Handling
• Student Travel
• Procurement Cards

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HOW TO PREPARE FOR AN AUDIT

• http//sago.tamu.edu/iaudit/
• Click on Presentations- Council of Senior
  Business Administrations Focus Session, April 21,
  2004, Audits How to Prepare and What to Expect.
  Presented by James Laird, Assistant Dean for
  Finance and Administration, College of Science
• Click on Resources- Texas State Auditors Office
  Assessing Risk in Key Accountability Control
  Systems.
• Click on Electronic Reports
• 1st Quarter Report FY 2005- TAMU Mays Business
  School
• 2nd Quarter Report FY 2005- TAES - Review of
  Revenue Management
• 1st Quarter Report FY 2004- TAMU- College of
  Science
• 2nd Quarter Report FY 2004- TAMU- Review of
  the Presidents Office
• 3rd Quarter Report FY 2004- TAMU-
  International Program
• 3rd Quarter Report FY 2004- TAMU- Athletics
  Department
• 3rd Quarter Report FY 2004- TAMU- Review of
  Transportation
• 4th Quarter Report FY 2004- TAMU- Review of
  the Corps Office of the Commandant

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How to Contact SIAD

• Phone [phone]
• Fax [phone]
• Web http//sago.tamu.edu/iaudit/
• Email
• Cathy Smock cathy-smock_at_tamu.edu
• Charlie Hrncir chrncir_at_tamu.edu