Audit Process
Audit projects are conducted in accordance with guidelines set forth in The University of Texas System’s Policy UTS 129 and the Institute of Internal Auditor’s International Standards for the Professional Practice of Internal Auditing and are initiated as a result of:
- Annual Audit Plan
- Requests (i.e., Management, UT System, State Auditor’s Office)
- Fraud or Special Investigations
The Annual Audit Plan is designed to address relevant risks that may negatively impact University operations. It is developed by the Office of Internal Audits using a risk-based methodology that includes any risks or control concerns identified by management, business and industry challenges, and student concerns. The draft is submitted to the Internal Audit Committee for review and approval in August and subsequently sent to the UT Board of Regents for approval.
The Audit steps include three main areas: planning, fieldwork, and communication.
Planning
Engagement Letter
Internal Audit notifies the client in writing when his or her area is selected for an audit. This document, which is referred to as an engagement letter, indicates the objective of the audit, audit staff members assigned to the audit, the projected time frame of the audit and the information the auditors will need the client to supply.
Entrance Conference
An entrance conference is scheduled with the client to discuss the purpose, scope and process of the audit. The director of Internal Audit and the assigned auditor(s) attend the entrance conference with personnel deemed appropriate by the client. Clients are encouraged to present any questions or concerns they may have about the audit. Clients may request a specific function or area of their office be examined during the audit or in future work.
Preliminary Survey
During this portion of the audit, the auditor(s) will gain an understanding of the client's procedures, objectives, size, etc. Written policies and procedures, organizational charts, related forms and job descriptions enable auditors to plan the audit tests to be performed and to become familiar with the client's operations. Internal controls are reviewed and documented during this portion of the audit.
Fieldwork
During this phase, the auditors will be in the client's area. This phase of the audit includes testing the internal controls and performing other audit procedures necessary to accomplish the objectives of the audit. Internal Audit appreciates the value of each person's time and tries to use the time allotted to auditors carefully. However, please be aware the auditors need to ask questions and will try to work around scheduling conflicts. Audit recommendations will be given to the appropriate person in writing.
Throughout the audit, the auditor will discuss any proposed recommendation with the client and then prepare a finding sheet. A written response is required. The response must include the client's plan for corrective action, the name and title of the person responsible for implementing the corrective action and the date by which the action will be implemented.
Review Audit Work
Continuous review is performed from the planning phase, fieldwork and through the final report, by the audit director. The review process might require additional work be performed in some cases.
Communication
Draft Audit Report
Internal Audit's goal is to complete the audit and issue a draft audit report within 30 days after the completion of fieldwork. The draft is prepared with a background section, the scope of the audit, any recommendations that were made, and the written response. An exit conference is scheduled and a copy of the draft report is sent to the client. The conference is an opportunity to discuss the audit recommendations, clarify any ambiguities and, if necessary, modify the draft report.
Final Report
The final report is issued to the Internal Audit Committee for approval and then distributed to appropriate senior management, U.T. System administration, and department or division management. U.T. System prepares a quarterly summary of reports completed by the institution to present to the Board of Regents. In addition, copies of reports are required to be distributed to the Governor’s Office, the Legislative Budget Board and the State Auditor’s Office.
Follow-up Audits
Follow-up audits are performed on all audit findings. These are usually performed within six to twelve months after the initial audit report is issued.
If you would like to request an audit or have questions, please contact us.
Contact Information
80 Fort Brown
Oliveira Library 234
Brownsville, Texas 78520
Phone: (956) 882-7023
Fax: (956) 882-3816
Email: Norma.Ramos@utb.edu