When beginning an audit, the Chief Internal Auditor will notify the pertinent department’s management of the objectives of the audit through an engagement letter or phone call.
The Chief Internal Auditor and/or the Auditor-in-charge will meet with management to discuss the nature and scope of the audit, and any concerns management may have.
The Auditor will review the internal controls and determine the areas that need further review and testing.
The Auditor will gather sufficient evidence through observation, testing, inspection, etc., to provide a reasonable assurance of the audit conclusions. During this process, the Auditor-in-charge will keep management informed on the progress of the audit.
The Auditor-in-charge and the Chief Internal Auditor will meet with management to discuss the audit results. The draft report is provided either during the meeting or shortly thereafter for management's review.
DRAFT AUDIT REPORT AND MANAGEMENT'S RESPONSE
The department being audited receives a copy of the draft report to review for accuracy. In addition, management provides a corrective action plan (management response) for each concern to Internal Audit by the requested response date. Management responses should mitigate the control issue described by the audit concerns, identify person(s) responsible for changes to be made, and contain an estimated target date by which the change will be implemented.
The report is finalized to include the audit concerns, recommendations, management’s responses, and the auditor's conclusion. The report is sent to the Board of Trustees, the Superintendent, the pertinent Associate Superintendent, and management.
Internal Audit performs a follow-up audit to review and report on the extent of implementation of recommended changes from the previous audit.
LENGTH OF AN AUDIT
Audits vary in length. Small audits may take from a few days to a few weeks; whereas, complex audits may last several months.