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The Role of theInternal Audit Department

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Definition of Internal AuditingInternal auditing is an independent,

objective assurance and consulting activitydesigned to add value and improve anorganization's operations. It helps anorganization accomplish its objectives bybringing a systematic, disciplined approachto evaluate and improve the effectiveness of

risk management, control, and governanceprocesses. The Institute of Internal Auditors

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Were Here to Help!

Identify Risks

Find Better Ways and Best Practices Partner With You to Find Solutions Prevent Problems

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We Report to the Board of Regents Audit Committee

- Ensures independence

Elevate issues to a level where they can becorrected

Keeps Regents informed

Meets quarterly

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What is Risk Based Auditing? Focus on risk of occurrences that could prevent

the University from achieving its goals

There are many types of risk fraud, improperreporting, ineffective or inefficient use ofresources, credibility loss, etc.

Focus on areas with high risk and high probabilitythat controls are not in place or are weak

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We have a plan! Risk based audit plan developed with input

from across the University Risk factors:

Impact Probability

Controls

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What Is the Plan?

List of audits for fiscal year

Based on risk assessment andavailable man hours

Includes estimated budget hours

and completion date Approved by Audit Committee

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Auditable EntitiesWE DO AUDIT

Operations andcompliance

Departments Colleges or Schools Programs, Grants,

Contracts Information Technology

Systems University-wide Processes

WE DO NOT AUDIT

Specific individuals

Human Resourceissues

Sexual harassment or

other civil rightsissues

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Internal Audit is Intake Point forWhistleblowers

University policy requires Internal Audit to receivereports of

MisconductFraud

Several ways to reportHotlineE-mailPhone

Walk in

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Who Are We?

We are University employeesWe are certified

public accountants,internal auditors,fraud examiners andinformation system auditors

We are a staff of 7 auditors

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Its the little things that get you! Misreporting hours. Forgetting to obtain prior approval when

needed. Using estimates that are not supported. Any violation of University policy.

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Preventive Measures Make sure your controls are working Review and reconcile Check the work of your subordinates Dont give in to the temptation to skip

controls because you are busy!

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What is included in the audit report?

What was found

Why it happened What is required What effect it has Recommendation for improvement Response who, when and how

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What happens after the audit?

Follow-up Review corrective action Report to Audit Committee

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Who Audits the Auditors?

We must have a peer review at least onceevery five years

Our Standards are set by the Institute ofInternal Auditors, and the AmericanInstitute of Certified Public Accountants

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We Want to Know How We Are Doing

At the completion of each audit we willsend an after-audit-survey

We want you to rate our performance Were we professional, helpful, timely and

did we add value? Please take the time to give us your

feedback.

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We are here to help

We provide training Respond to policy and

technical accountingquestions

Offer suggestions forimprovement

Advisory role

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Christine Chavez

Director of Internal Audit

277-5016

1801 Roma NE