Internal Audit Services Process
Preface
When and audit engagement is proposed, it is communicated to Senior Management, School Board Audit Services, the Audit Committee or the Richmond City School Board.
That notion is vetted by Senior Management, School Board Audit Services, the Audit Committee and or the Richmond City School Board. If deemed to have merit, the notions is more fully and deeply vetted via a quantitative and or a qualitative risk assessment process.
If the concept is found to have enough merit via the risk assessment process and further vetting by Senior Management, School Board Audit Services, the Audit Committee or the Richmond City School Board it is chosen as a possible selection on a menu of possible engagements for the Annual Audit Plan which is later approved by the Richmond City School Board.
The concept must indeed present some type of material risk or threat to the organization or the organizations goals, targets and objectives which would warrant assurance efforts by the School Board Audit Services department.
Once the concept is approved by the Richmond City School Board, it is then scheduled on the Annual Audit Plan, the below engagement process advances.
The following is not intended to be an exhaustive litany of engagement steps. An experienced auditor is expected to know the nuances of the process and an inexperienced auditor is expected make inquires to obtain a thorough understanding of the process.
Generally, the audit process unfolds and more-or-less consists of the phases listed below.
Steps in the Engagement Process
a) Preliminary Survey and Planning
The purpose of the preliminary survey is to obtain background information and establish a practical working knowledge of departmental objectives and procedures; be aware of available files and records; and applicable laws, rules, and regulations. This information will be used to develop the audit plan and audit program.
b) Notification
An engagement memo will be sent to management of the area to be audited. The memo will indicate the audit scope and objectives, anticipated timing of the audit fieldwork, the auditors assigned to the audit, and the target date for audit completion.
c) Entrance Conference
An entrance conference is held with Internal Audit and management as well as any other key employees who may be involved in the audit to facilitate the beginning of fieldwork and address any questions or concerns regarding the engagement.
d) Fieldwork
The objective of fieldwork is to document Internal Audit’s understanding of internal controls; perform risk assessment procedures, including consideration of fraud risks and perform tests of controls and tests of transactions.
School Board Audit Services will regularly communicate with management regarding any issues or concerns that may arise through this process. Emerging issues are to be immediately brought the Auditee’s attention and vetted. All issues, findings, concerns are to be discussed with the Auditee well before final reporting. Agreement is to be reached on the merit of an issue well prior to the reporting phase.
e) Draft Audit Report for Discussion
A draft report will be submitted to management for review and allow for management to provide a response to any noted observations.
f) Exit Conference
The purpose of the exit conference is to formally present the engagement findings to management, discuss planned corrective actions, and address any questions or concerns. No new issue or concerns will be presented at the Exit Conference, that is to be done during Fieldwork when issues emerge.
g) Final Audit Report
Once management’s responses have been received, they will be incorporated into the final report. The final report will then be presented at the next planned Audit Committee meeting where management may be invited to present plans for corrective action to the Committee members.
Audit reports are public record although their distribution is limited to select management and School Board officials. Final reports are posted on the Internal Audit Webpage.
