Question

What are some specific audits performed by internal audit? Financial, operational or IT audits are specific enough.

Answer 1

Types of Audits

1. Compliance Audits: The compliance audit function focuses on compliance risks and the related mitigation plans. The function stays abreast and promotes awareness, of current and emerging laws and regulations impacting higher education. It also develops audit programs to assess, evaluate, and make recommendations to management regarding the effectiveness of the University's compliance program. The function evaluates whether the compliance program promotes a culture that fosters ethical and compliant behavior and includes adequate internal controls that effectively prevent and/or detect violations of laws, regulations, University policies or code of conduct.

2. Financial Audits: The financial audit function develops audit programs to assess, evaluate, and make recommendations to management regarding accounting and financial reporting of transactions and activities. The central objective is to ensure that the financial activity of the department, unit or area is completely and accurately reflected in the appropriate financial reports. Some areas of financial audits include procurement, segregation of duties, authorizations and approvals, reviews and reconciliations.

3. Operational Audits: The operational audit function assesses risks and evaluates internal controls for operations of departments, units, and areas. Operational audit objectives include determining whether operations are functioning efficiently, effectively, in alignment with the University mission, and in accordance with management's intent. Some areas of operational audits include: organizational structure, processes and procedures, the accuracy of data, management and security of assets, staffing, and productivity

4. Construction Audits: Construction auditing blends critical financial, operational and compliance approaches to develop audit programs that assess, evaluate and make recommendations to those managing Brown's construction projects. Some core financial elements in construction audits include: contract accounting, reconciliations, pricing, allowable costs, overhead, change orders, and supporting documentation for claimed costs. It also evaluates key operational functions such as contractor selection process, contract development, change orders, schedule management, and delivery timeliness. Compliance elements can include: funding documentation requirements, and compliance with current laws and regulations

5. Advisory and Consulting Engagements: Advisory and consulting engagements include a review of existing business processes and strategies, as well as implementations. It also includes evaluation and advice on policies, procedures, process enhancements, and any management requests for reviews of areas considered mutually critical. These engagements are usually requested by senior management and may not always be included in the rolling audit plan.