Our audit process encompasses both long and short term planning and development. An audit plan is prepared annually for presentation to and approval by the Audit Committee. Audit topics are determined by the level of risk associated with the area; the potential for control enhancements, cost savings, and service improvements; and requests from the School Board and management. Audits are then conducted in multiple phases beginning with a survey and risk assessment. The results of these two phases form the foundation for the fieldwork phase. Report writing summarizes and makes public the results of fieldwork. Follow-up is a periodic review to determine the progress and implementation status of agreed upon improvements.
Survey
The purpose of the preliminary survey is to gain an understanding of the program or activity being audited. We review written procedures, memoranda, organization charts, regulations, and budgets. We interview program staff and collect, summarize, and evaluate information that will be used to identify potential audit issues and develop an audit program. A good preliminary survey is essential to a successful audit.
Risk Assessment
The purpose of risk assessment is to focus audit work on important program elements that may be at risk. This helps limit the amount of testing required, and produces a more cost-effective, timely, and relevant audit. The objectives of risk assessment are to:
- Identify the major risks or threats associated within the program
- Conduct a preliminary assessment of the internal controls that management has in place to mitigate those threats
- Develop an audit program to test areas of highest vulnerability
Fieldwork
During fieldwork, the audit team identifies criteria, gathers evidence, and measures and evaluates key controls of the area. Auditors use a variety of investigative techniques including observing, interviewing, sampling, analyzing, and verifying. Sufficient evidence will be developed to support audit observations and recommendations for improvement. Audit obervations include five elements:
- Condition (what is)
- Criteria (what should be)
- Cause (what happened)
- Effect (why does it matter)
- Recommendations
Report Writing
During the audit process, we discuss issues with departmental management and staff as they arise. Once field work is complete, we prepare the first draft of the written audit report and hold an exit conference with departmental management to review the observations. Departmental staff provide feedback and comment on the draft. Meanwhile, we verify that each statement of fact in the report is supported in the audit working papers. These processes help ensure that the report is balanced and accurate. The final audit report summarizes key issues, findings, recommendations, and includes management's response. Audit reports are issued to the Audit Committee, the appropriate leadership team member, and departmental management. The reports are public documents.
Follow-Up
The final audit report contains management's responses to audit recommendations. This includes the actions to be taken and anticipated dates of completion. We then evaluate the progress of managements actions during a follow-up review. Upon completion of the review, we issue a memo to the Audit Committee and all recipients of the original report indicating the status of the recommended actions.
|
