Internal Audit Department Policy Manual - Download Now DOC by HC120922183244


									LSUHSC – SHREVEPORT                                  INTERNAL AUDIT POLICY MANUAL


   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.


     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
   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
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.


   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.

To top