|:: Internal Audit Frequently Asked Questions
|What is the purpose of the Internal Audit Division website?
“Audit” almost invariably has a negative context to it – it comes from several sources such as:
- Lack of understanding
It is mostly a matter of perspective, approach and attitude.
These web pages are here to help make individuals whose departments are being reviewed (“audited”) more comfortable with our office and the work being completed by our staff. We want to make the audit experience less fearful and more helpful to departments/divisions in the City government. A department/division being reviewed should look at an audit as a learning experience and an opportunity to enhance their operations and the City services as a whole.
|How did I get selected?
There are several ways a department could be
chosen for an audit. The Internal Audit Division uses a modified
risk-based approach in the determination of which
departments/functions to audit during a given fiscal year. Some of
the factors that are used in the evaluation are:
- Complexity of the department, volume of transactions, etc.
- Cash income/revenue of the department each year
- Other types of income/revenue
- Quantity of State/Federal grants
- State/Federal regulations related to the department
- Management concerns
- Percentage of turnover of key personnel in the last year
In addition, City Management may request an audit for various
reasons, such as suspicion of fraud, review of operational
procedures, or assessment of key controls in specific
functions/programs. These special requests are usually worked into
our annual audit plan as soon as practical.
|What can I expect during an audit?
|There are several steps in performing an audit. First, the
Internal Audit Division will send an introduction letter to the
Director of the department. The letter states that an audit will be
forthcoming and that we will be in touch shortly. Next, we set up an
entrance meeting where the key members of the department are
introduced to the auditor. This meeting is usually a forum for
Internal Audit to gain an understanding of key processes in the
department and go over how much time the audit may take, whether or
not we will need space provided for us during the audit, and to go
over any additional concerns of department management.
entrance meeting has been held, the auditor will be in contact with
the key personnel for interviews. The interview process is to allow
us to gain an understanding of each key process in the department.
Once the processes have been defined and documented, we will perform
test work to ensure controls are in place to adequately safeguard
City assets, etc. After all test work has been completed, the
results of the audit are communicated to the key personnel for
discussion. Finally, a draft report will be prepared and sent to the
department, along with a request for a response to specific
findings. Once the findings have been addressed, a final report will
here to see the Audit Process.
|How can I prepare for the audit?
Before our office comes to perform an audit an
introduction letter is emailed. This email requests some information
that will help the audit go smoothly. Typically, we request:
In addition, it is helpful if the staff in the department can be
notified of the impending audit and let them know that we are here
as a business partner to help assess the operating controls in the
department. Let the staff know they should be available to talk with
us and to cooperate in getting information, etc. This will ensure
the audit will go smoothly and wrap up in a timely manner.
- an organization chart
- copy of policies/procedures for the function/program to be
- key contact names
- list of systems/applications used in the function/program to
to see Tips and Tools.
|How much time will you require to complete your
|Our length of review can vary with every engagement. Things that
may factor into the length of our review of your department can
include the following: (1) the amount of resources your office can
supply to us during our review; (2) the nature/complexity of what is
being reviewed; and (3) the complexity of department/division
operations. There is no standard time we can put on a review;
however, a standard operational review can generally last
approximately six to eight weeks.
|Who else will see my audit report?
|The audit report is first sent to the department Director in
draft format for review and response. Once the draft is agreed upon,
the final report is sent to the department Director, the City
Manager and the Assistant City Managers. In some instances, the CIO
and Legal may be copied on the report. The report is not accessible
via the web site. At his discretion, the City Manager may share the
report with the City Council.
|For more information, call the Internal Audit Division at