Each year, the University of Louisiana System’s Board of Supervisors approves an annual audit plan for Louisiana Tech University. This plan is developed based on a risk assessment of the University, as well as input from the University’s management and the Board.
During the planning phase, the auditor will review the files of prior audits in an area (if any), review applicable professional literature, research any applicable policies or statutes, and finally prepare an audit program which is a list of steps to be performed on the audit.
The auditor-in-charge will hold a meeting with the department head/administrator or others affected by the review. The purpose of the meeting is to discuss the audit process, the general scope, and the anticipated timing.
We make an effort to minimize any disruption of regular departmental routines and avoid seasonal busy periods. Any areas of concern the client would like to have the audit team review should be brought up at this stage.
Preliminary Survey – The auditor will review documented policies and procedures and interview departmental staff members to become familiar with the department’s operations.
Transaction Testing – The purpose of transaction testing is to examine documents and other records for evidence that the internal controls which have been described to us in the preliminary survey stage are actually in place and work as intended on a daily basis.
Audit Findings – The auditor will bring all potential audit findings to the client’s attention as they are identified in an attempt to resolve them before completion of fieldwork. Some of the potential findings may turn out not to be findings at all, and will be disposed of. Others may be findings which can be corrected quickly, possibly before the audit is completed. Still others may be findings which will require more analysis and study by the client after the audit is completed.
The exit conference is a meeting between departmental management and personnel from the Office of Internal Audit. At this meeting, the findings from the fieldwork will be discussed and the factual accuracy of this information will be verified. The conference is an opportunity for department personnel to discuss potential action plans to address the findings. Occasionally, we will make recommendations on items we do not include in the report. These recommendations are usually presented in a separate memorandum.
Draft Report – An initial draft will be presented to the department head for review and comment. The department head will be asked to submit written responses to each finding and outline the planned action to address the finding. These responses will be incorporated into the final report.
Final Report – The final report will be addressed to the President of the University. At a minimum, the appropriate Vice President and department head will receive copies of the final report. The final report is also sent to the Director of Internal and External Audit for the University of Louisiana System.
Within approximately six months, a follow-up of audit findings will be made. The department head will be requested to detail actions taken or the status of planned actions. Audit testing will be performed as necessary to verify actions taken in connection with the audit findings.