Effective Date:  08/15/1996

Internal Audit Polices and Procedures

Chapter 8 - Risk Assessment & Long Range Audit Plan

Risk Assessment The Internal Audit Department uses a comprehensive, risk assessment model to develop a long-range audit plan. This model allows all areas of the University to be evaluated using uniform criteria. Factors and weights used to assess and score each potential audit area include such items as: financial statistics; complexity of operations; interaction with other areas of the University or outside parties; consequences of errors or omissions; and the impact of negative publicity. A risk assessment and development of a new long-range plan is done once every five years.

In performing this project, we will use data from University information systems and publications and conduct limited inquiry with staff and management in key operating areas.

Audit Plan The scores from the risk assessment, staff resources available, and management input are used to develop a long-range audit plan and annual work schedules. The long-range plan covers a four-year time frame and includes blocks of time for routine audits, special projects (those requested by management or involving allegations of misuse), and administrative functions such as staff training and development. 

Our goal is to provide the most comprehensive, beneficial audit services to the University. However, since staff resources are limited, we cannot provide coverage to all areas. Therefore, hours for routine audits will be allotted first to sensitive areas and areas determined to have the greatest significance to the University. Routine audits will be scheduled for lower risk areas as time permits or may be addressed through special projects.

Work schedules will be updated annually to allow for changes in the University’s operating environment.

To extent possible, the timing of routine audits and special projects will accommodate daily operations as well as "busy seasons" in departments that have variable work loads.

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