LSUHSC – SHREVEPORT INTERNAL AUDIT POLICY MANUAL SUBJECT: Communicating DATE ISSUED: December 28, 1994 NUMBER: II-F Results DATE REVISED: January 3, 2002 PAGE 1 OF 3 A. Auditors should report the results of their audit work. A signed, written report shall be issued after each audit is completed. The final report will include the management response to each audit comment. All reports will be addressed to the Chancellor, with copies going to applicable recipients. When possible, the audit report will be emailed to the recipients. The Director of Internal Audit’s signature will be electronically affixed to the reports that are emailed. B. During the course of fieldwork, the Auditor will discuss conclusions and recommendations at appropriate levels of management prior to issuing final written reports. Reports will be objective, clear, concise, constructive, and timely. Reports will present an introduction, which includes the scope of audit coverage. The background section provides readers with information regarding the auditee’s operations. An audit objective section will cover the purpose of the audit. The report will include an executive summary, where applicable, that presents a brief synopsis of the recommendations and management responses. Detailed findings and management responses will also be included in the report. The Director of Internal Audit will review, approve, and sign the final report prior to distribution. C. During fieldwork, the Auditors are responsible for drafting applicable audit comments and reviewing the information with the appropriate line manager. These discussions and reviews help endure that there have been no misunderstandings or misinterpretations of fact by providing the opportunity for the auditee to clarify specific items and to express views of the findings, conclusions, and recommendations. Although the level of participants in the discussions may vary by nature of the issue, they will generally include those individuals who are knowledgeable of detailed operations and those who can authorize the implementation of corrective action. D. Findings, conclusions, and recommendations should be included without prejudice. Avoiding unnecessary technical language and providing sufficient supportive information can improve clarity. Constructive reports are those which, as a result of their content and tone, help the auditee and the Health Sciences Center and lead to improvements, where needed. E. Findings should be written using the following format: Condition: The factual evidence that the Auditor found in the course of the examination (what does occur). Criteria: The standards, measures, or expectations used in making an evaluation and/or verification (what should occur). Risk Exposure: The risk or exposure the auditee and/or others encounter because the condition is deficient (impact of the finding). Recommendation: Suggested corrective action. Management’s Response: Auditee opinion and statements regarding concurrence or non-concurrence with the finding and corrective action planned by management. LSUHSC – SHREVEPORT INTERNAL AUDIT POLICY MANUAL SUBJECT: Communicating DATE ISSUED: December 28, 1994 NUMBER: II-F Results DATE REVISED: January 3, 2002 PAGE 2 OF 3 Based on the nature of the audit comment, the specific information reported will vary. However, the nature of the risk exposure and reasonable recommendations should be clearly stated and substantiated by fact. Management’s response to each comment, including plans for resolution should be included in the final report. F. Management Responses – Written management responses to draft findings and recommendations are required within ten (10) working days from the date the findings are presented to management. The management responses should express explicit concurrence or non-concurrence on all elements of a finding (on the facts, conclusions, and recommendations) in language clear and simple as possible with emphasis on improvement. A separate response will be provided for each finding. Concurrence with a recommendation should be accompanied by specific actions that will be taken to implement it and by realistic and reasonable target dates for accomplishing the corrective actions. If there is non-concurrence with the finding and recommendation, the management response should cite the specific reasons. G. The initial draft audit comment should be stamped “DRAFT for Discussion Only” in red prior to its release. The auditee must be made aware that the information is subject to revision, if applicable. H. After initial review by line management, the Auditor is responsible for working with management to secure a “management response” to be included in the final report. The level of manager will vary depending on the degree of authority and responsibility covered in the audit finding. I. Upon attainment of the management responses, the final draft of the audit report is issued to all applicable individuals. At this time, the Closing Conference is scheduled. As all applicable parties have reviewed the comments, there should be no surprises at the Closing Conference. J. All unresolved issues should be finalized at the Closing Conference. Upon acceptance, the final audit report is issued to the individuals listed on the distribution list. K. On a quarterly basis, a copy of the audit report, including management responses, will be sent to the LSU System Director of Internal Audit. A summary of the report will be included in the quarterly report to the LSU Board of Supervisors. L. The Legislative Auditors review all Internal Audit reports annually. Per the discretion of the Auditor-In-Charge, information contained in the Internal Audit reports may be incorporated in the annual external audit report. M. Access to Internal Audit reports will be strictly limited. Express permission must be provided by the Director of Internal Audit prior to the release of confidential information to any internal or external party. LSUHSC – SHREVEPORT INTERNAL AUDIT POLICY MANUAL SUBJECT: Communicating DATE ISSUED: December 28, 1994 NUMBER: II-F Results DATE REVISED: January 3, 2002 PAGE 3 OF 3 N. The Chancellor and the Vice Chancellor for Business and Reimbursements will be kept abreast of all on-going audit activity, and will receive a final copy of all audit reports issued. All audit reports will be addressed to the Chancellor.
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