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Planning
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The auditor initiates the audit process,
gains an understanding of the department, identifies risks,
and establishes specific audit objectives. The auditor:
• Contacts and informs department
management of the reason for the audit and general scope.
•
Meets with management to discuss and obtain general
information about the department
• Performs a risk
assessment to determine audit scope (areas to audit) and
objectives.
• Develops the audit plan and programs.
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Entrance Meeting
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Department management and Department of
Audits’ staff meet to discuss the next steps and
functional areas that are included in the audit. The
attendees:
• Discuss preliminary audit scope and
objectives based on risk assessment
• Discuss
department concerns or additional areas of audit
interest.
• Review audit and reporting processes.
•
Determine time frame for audit.
• Establish
department contact person for the auditor staff to
communicate audit concerns throughout the audit process.
•
Distribute client feedback survey.
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Fieldwork
|
The auditor reviews, evaluates, and tests
internal controls. The auditor:
• Meets with department staff to obtain
understanding of internal control structure
•
Performs and documents audit tests.
• Identifies
weaknesses in policies or procedures, or business
operations.
• Summarizes audit results and
communicates areas of concern to department’s primary
audit contact.
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Draft report
|
The auditor reviews the audit documentation
and prepares a draft report to:
• Communicate the audit scope,
objectives, and conclusions.
• Provide comments and
recommendations related to weaknesses in internal controls.
Comments include the following
elements:
Condition – what happened.
Cause
– why did it happen.
Effect or risks - the
resulting outcome or impact.
Criteria – what
should be.
Recommendation – what should be done to
address the cause.
• Department of Audits’ staff
distributes the draft report to applicable department
management.
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Exit meeting
|
Department management and Department of
Audits’ staff meet to conclude the audit and discuss
the draft report. The attendees:
• Review
draft report content and discuss changes.
•
Determine due date for management’s response.
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Management’s Response
|
Department management prepares a written
response to the audit recommendations in the draft report.
The response includes:
• Corrective action to
be taken.
• Implementation timeframe.
Department
of Audits’ staff reviews and adds management’s
response to the draft report.
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Final Report
|
Department of Audits’ staff prepares
the report for final distribution to department management,
other University of Washington officials as appropriate,
and the State Auditor’s Office.
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Follow-up
|
The auditor contacts department management to
determine implementation status of audit recommendations.
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