How are areas selected for internal audits?

Audit and Management Services performs an annual risk assessment to ensure that key audit areas (departments or activities) at the University are examined on a sufficiently frequent basis. Risk assessment scores for potential audit areas are updated at the conclusion of audits or when we become aware of significant changes (e.g., restructuring, new departments or services, etc.). Also, we request that departments complete a risk survey every other year to ensure that we are aware of major changes. The risk scores for each audit area are derived by assigning numerical ratings for nine weighted risk factors.

The updated risk assessment score is then used to develop the Long Range Audit Plan and Resource Analysis, which covers a five year period. The frequency of audits for an area is determined by evaluating the level of risk in audit areas. The higher the risk score assigned to a given area, the greater the audit frequency. In addition to scheduled audit areas, the plan also includes time for special projects. Such projects may be requested by University management or may be performed as a result of suspected fraud, waste or abuse.

Annual Audit Plans are derived from the Long Range Plan and, more importantly, input from Vice Presidents. Each year we ask the Vice Presidents to review the Long Range Plan and provide this input. When possible, the Annual Audit Plan is adjusted to incorporate additions or changes suggested by the Vice Presidents. A key goal of our department is to provide adequate resources to address requests from management to do projects involving consultative services, analyses and efficiency reviews.  

The Long Range and Annual Audit Plans are approved by the Audit Committee of the Board of Visitors. All audits scheduled for any particular year on the Long Range Plan may not be included on the Annual Audit Plan for that year due to resource constraints, a larger volume of special projects or other variables.

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