Audit Program for Departmental and University-wide Follow-up Reviews

1. Discuss results of Audit’s review of information provided about the status of previously reported findings and any testwork performed with management of the areas included in the follow-up review.


2. For University-wide Annual Follow-up:


1. Provide a copy of Outstanding Findings report, Repeat Finding report, Corrected Findings report, and Closed Findings report (if any) to managers of departments included in the follow-up review.  Allow approximately 2 weeks for comments and questions and, if necessary, update the database based on comments these managers have made.


2. After department heads have reviewed and responded to their reports, provide a copy of Outstanding Findings report, Repeat Finding report, and Closed Findings report (if any) to deans in charge of departments included in the follow-up review.  Allow approximately 2 weeks for comments and questions and, if necessary, update the database based on comments these individuals have made.


3. After deans have reviewed and responded to their reports, provide a copy of Outstanding Findings report, Repeat Finding report, and Closed Findings report (if any) to associate vice-chancellors and vice-provosts in charge of departments included in the follow-up review.  Allow approximately 2 weeks for comments and questions and, if necessary, update the database based on comments these individuals have made.
   


4. After associate vice-chancellors and vice-provosts have reviewed and responded to their reports, provide a copy of Outstanding Findings report, Repeat Finding report, and Closed Findings report (if any) to individuals at the executive level.  If these individuals received a copy of reports in step 2a, b, or c, do not re-issue.  Allow approximately 2 weeks for comments and questions and, if necessary, update the database based on comments these individuals have made.


3. Issue final report to the Chancellor; for University-wide Follow-up, attach a copy of the final version of Outstanding Findings report, Repeat Finding report, and Closed Finding report.  The Repeat Finding report should be printed on blue paper.

1. Follow steps in "Administrative Documentation Index".


2. Prepare a time summary of total hours charged to the audit;  if hours vary from approved budget by +/-10%, provide explantion of cause of variance.
   

1. For a follow-up review of a specific audit report:
   


1. Obtain a copy of the original report.  Become familiar with findings and responses.  Identify issues where testing may be needed to determine in satisfactory corrective action has been taken.


2. For each finding, prepare a working paper that briefly summarizes major issues (or attach a copy of the comments from the report).


3. Contact department management to arrange a time to notify them of the follow-up review and arrange a time to meet and discuss the status of findings from the original report.


2. For University-wide Annual Follow-up:


1. Approximately 3 – 4 weeks before follow-up testing is scheduled to begin, verify that the Findings2000 database is up-to-date by printing the Reports table and comparing the items in the table to the manual list of reports maintained by the Internal Audit Administrative Assistant.  Also, if a written report with findings was issued, review the Findings table to see if findings have been entered for each report issued since the prior follow-up review.  If any items have not been entered, have the in-charge for that project prepare and submit the necessary forms so the information can be entered into the database.
   
2. Once the Findings 2000 database is current, update the queries and reports forms needed for the follow-up process:
   
   NOTE:  To update a query, open it in design view; years in dates must be entered in a 4-digit format.  To update a report form, open it in design view and edit titles and labels as needed.


1. Update the Outstanding Finding Query by changing the criteria in the RptDate (report date) field to the cut-off date for the current follow-up review.  The cut-off date should be at least 3 months earlier to be sure we have given auditees reasonable time to begin addressing findings.  This change will allow us to produce reports of any outstanding findings from reports issued prior to the cut-off date.


2. Update the Non-Repeat Query and Repeat Query by changing the criteria in the RptDate (report date) field to the cut-off date for the current follow-up review.  These two queries will be used to produces separate reports of outstanding findings that are reasonably uncorrected and outstanding findings that we conclude could and should have been corrected.


3. Update the Closed Query by changing the criteria in the CorrectDate (the date the finding was corrected) field to the last date of fieldwork date from the PRIOR follow-up.  This change will allow us to produce reports of findings cleared since the last follow-up review by some means other than being corrected. 
   


4. Once testing is complete, update the Corrected Finding Query by changing the criteria in the CorrectDate (date finding was corrected) field to with the last date of fieldwork form the PRIOR follow-up.  This change will allow us to produce a report of findings corrected during the current follow-up cycle.


5. Update the following report forms by changing the “as of” date in the report titles to the follow-up cut-off date for:
   
   1. Initial Report
   2. Inquiry Form (also change the date in the label of the Corrective Action through xx/xx/xxxxx to the last date of fieldwork from the PRIOR follow-up review and enter the correct contact information in the page footer)
   3. Department Heads – Report #1
   4. Department Heads – Report #1 - Repeats
   5. Department Heads – Report #1 - Closed
   6. Deans – Report #2
   7. Deans – Report #2 - Repeats
   8. Deans – Report #2 – Closed
   9. AVCs – Report #3
   10. AVCs – Report #3 - Repeats
   11. AVCs – Report #3 - Closed
   12. Executives – Report #4
   13. Executives – Report #4 - Repeats
   14. Executives – Report #4 - Closed
   15. Final Report
   16. Final Report - Repeats
   17. Final Report – Closed
6. Once testing is complete, update the Corrected Findings report form by changing the “as of” date to the end of fieldwork for the current follow-up review to show.


3. After the queries and report forms have been updated, print the Initial Report and review for reasonableness and completeness. If any errors are noted, correct and reprint. The Initial Report will used as a master list of findings being reviewed in the currently follow-up process.


4. Once all corrections have been made to the Findings 2000 database, print Initial Report and Inquiry Forms using Access.


5. To create a form that can be used to track the results of review and testing work done during a follow-up review, copy Tracking Sheet Merge Document.doc from the prior year’s follow-up sub-directory of Word files, open the copied filed and edit following information in the header: change ??? in the “As of ???” line to the current follow-up cut-off date and change xx/xx/xx in the “Action Taken through xx/xx/xx” column title to the end of fieldwork date from the prior follow-up review. Once the document has been edited, click the “Merge” button on the MailMerge toolbar, and then click the Merge button in the Merge window. Word will import information from the Findings2000 database and create the tracking form. Save the document as a Word file.
   
   Since the form inserts page breaks after each finding, you need to manually delete the page breaks and duplicate headers between findings for the same report so that these will all print on the same page.


6. Prepare a cover memorandum for department managers with outstanding findings. The memo should announce the follow-up review, describe the process that will be followed, ask for an update about the status of each finding, and give a due date and contact information. See the Announce Memo report form for example wording.
   
   Send each manager his/her inquiry forms accompanied by a cover letter.


7. As completed Inquiry Forms are received, review the forms for adequacy and update assessment re: which items must be tested to evaluate corrective action. Contact staff in these departments to arrange a time for a site visit for testing.


8. If no testing is needed or when testing is finished, complete the Tracking Form for that audit and submit it to the Audit Director for review and entry into the Findings2000 database.

Develop an audit program with tests designed to determine whether control strengths identified during the analysis of internal controls. If appropriate, tests to investigate the effect of serious weaknesses may also need to be included.

For each item included in the follow-up, review status information provided by management to determine if information addresses all parts of finding and if a corrected date or revised due date has been provided. Contact unit management to obtain any missing information.

Also, evaluate action reported as taken in response to each finding to see if the finding has been satisfactorily corrected. If necessary, based on the nature of the finding and responses, develop audit tests to substantiate that the finding has been corrected.

Once the status of a finding has been evaluated, complete tracking form for review by Director and entry into the Findings database.

1. 1st report


1. 1st test if needed
2. 2nd test if needed

2. 2nd report


1. 1st test if needed
2. 2nd test if needed