Scheduling an Audit and Follow-up Procedures
The Office of the University Auditor follows a standard process in the conduct of its scheduled audits. The process is intended to be an interactive one; the following will provide information that promotes an understanding of the process and everyone's role in the review. The audit process is as follows:
Scheduling of Audits
Each year, the University's Board of Visitors approves an annual audit plan for Old Dominion University. The development of this audit plan and the individual audits that will be performed is a multi-step process. This process works as follows:
- The first step is a University-wide risk assessment. A risk assessment is a systematic process for assessing and integrating professional judgements about probable adverse conditions and/or events. The process provides a means to organize and prioritize these judgements so that they may be used to assist in developing an audit schedule. The risk assessment provides a long-range guide and source of information for developing annual audit plans.
- The results of the risk assessment are balanced by other factors, including:
a. A desire to coordinate audit work with the Auditor of Public Accounts so that Internal Audit complements their work and does not duplicate it;
b. Concerns expressed by administrators, Board members, internal audit staff or other state personnel as to areas that should be audited;
c. A desire for audit coverage throughout the University, to include audits in all vice presidential areas and areas never audited before;
d. Major changes in operations, programs, systems or controls;
e. The time elapsed since an activity's last audit;
f. Auditor judgement; and
g. Audit work requested or required each year, such as the Commonwealth's Fraud, Waste and Abuse Hotline and various ongoing projects.
Notification
Initial contact is made by memo with the appropriate department head or administrator to schedule an entrance conference.
Entrance Conference
The auditor-in-charge will hold a meeting with the department head/administrator or others affected by the review. The purpose of the meeting is to discuss the audit process, the general scope, and anticipated timing. This is also an opportunity for department personnel to have input into areas that might be reviewed.
Performance Of The Audit
Preliminary Survey - The auditor will review documented policies and procedures and interview departmental staff members to become familiar with the department's operations. This step may include the preparation of flowcharts and completion of internal control questionnaires.
Fieldwork - Based on the results of the preliminary survey, the testing to be performed will be defined. The auditor will perform the testing defined and other tests as necessary during the fieldwork stage.
Exit Conference
The auditor will hold an exit conference with department personnel. At this meeting the findings from the fieldwork will be discussed and the factual accuracy of this information will be verified. The conference is an opportunity for department personnel to discuss potential action plans to address the findings.
Reporting
Initial Draft Report - An initial draft will be presented to the department head for review and comment. The department head and auditor are to agree to any necessary changes in the report. The department head will be asked to submit written responses to each finding, outlining the planned action to address the finding, the person(s) responsible and a planned date of implementation. These responses will be incorporated into the draft. See Response Procedures for details on responding to an audit report.
Second Draft Report - A draft report, with department responses incorporated, will be issued to the appropriate Vice President for review and comment.
Final Report - Once signed off by the Vice President, the final report will be addressed to the President of the University. At a minimum, the appropriate Vice President and department head will receive copies of the final report. A summary of each audit report issued is given to the Board of Visitors for their review. Review a sample format of our audit reports (see C-18.2 in the Manual section).
Follow-Up
Within approximately one year, a follow-up of audit findings is made. The department head is requested to detail actions taken or the status of planned actions. Audit testing will be performed as necessary to verify actions taken in connection with the audit findings.
Feedback On Audit Services
Once the audit is complete, the auditee will have an opportunity to provide feedback about the audit. Pleas see the Auditee Questionnaire Form.
