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Internal Audit System - PowerPoint

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					The Role of Internal Audit
           in a
  Compliance Program

           Presented by
   David B. Crawford, CIA, CPA
          Audit Manager
     U.T. System Audit Office
          U.T. System Audit Office, David B.   1
                    Crawford, 1999
   U. T. System Components
              6 Health Institutions
           U. T. Southwestern
        Medical Center - Dallas       U. T. Health
                                      Center - Tyler

U. T. Health Science Center -           U. T. Health
                 San Antonio            Science Center
                                        - Houston

          U. T. M.D. Anderson Cancer
          Center - Houston           U. T. Medical
                                     Branch - Galveston
                                                       5
     U. T. System
Health Component Facts
 • Operating Budget - Health
   Components
   – $3.8 Billion

 • Health Component Facilities
   – 3 Hospitals
   – 4 Medical Schools
   – 2 Dental Schools
   – 7 Nursing Schools
                                 6
      U. T. System
 Health Component Facts
                 (Continued)

• The U. T. System operates the second
  largest academic health care system
  in the nation.
  – $824 million annually in indigent care
  – 95,000 hospital admissions annually
  – 3.8 million outpatient visits annually

• Health Component Research exceeds
  $500 million per year
• Two-Thirds Students in Texas public
  health institutions
                                             7
                     Topics
• Background
• Roles of the Internal Audit Department
• Relationship Between Internal Audit
  Department and Institutional Compliance
  Function
• Role as Auditor
• Wrap-up and Q&A

               U.T. System Audit Office, David B.   5
                         Crawford, 1999
              Background
• The University of Texas System

• Why an Institutional Compliance Program

• Internal Audits Initial Involvement

• The Action Plan
               U.T. System Audit Office, David B.   6
                         Crawford, 1999
    Roles of the Internal Audit
           Department
• Facilitator

• Trainer

• Consultant

• Auditor       U.T. System Audit Office, David B.   7
                          Crawford, 1999
 Relationship Between Internal Audit
Department and Institutional Compliance
              Function

   Who Does What

   Avoid Duplications and
    Ambiguous Accountability

   Levels of Internal Control
            U.T. System Audit Office, David B.   8
                      Crawford, 1999
           Levels of Control
• The slides on this concept have been
  removed from this presentation. To see a
  discussion of this new concept return to the
  Resources page of our website and click on
  – Internal Audit Assurance Role




               U.T. System Audit Office, David B.   9
                         Crawford, 1999
           Role as Auditor
• Risk-Based Compliance Plan Design Audit

• High-Risk Area Audits

• Departmental Audits

• Peer Review Team Leader
              U.T. System Audit Office, David B.   10
                        Crawford, 1999
  Risk-Based Compliance Plan
         Design Audit
• Criteria established by Action Plan
• Audit is a Gap analysis
• Key criteria
  –   Infrastructure in Place
  –   Risk Assessment Acceptable
  –   High Risk Areas Identified
  –   General Compliance Training Identified
  –   Confidential Reporting Mechanism Available
  –   Self Assessment Defined David B.
                   U.T. System Audit Office,       11
                      Crawford, 1999
       High-Risk Area Audits

• Single Responsible Party

• Monitoring Plan

• Specialized Training Plan

              U.T. System Audit Office, David B.   12
                        Crawford, 1999
         Departmental Audits
• Identify key compliance controls for high-
  risk areas
• Identify the high-risk areas that affect each
  department
• Ensure the key compliance controls are
  operating for all high-risk areas that affect
  the department

                U.T. System Audit Office, David B.   13
                          Crawford, 1999
      Peer Review Team Leader
• Perform Annually
• Review Risk Assessment Process
• Review Activity v. Plan
• Compare Results to Activity Reported to
  System-wide Compliance Committee
• Review the Self Assessment
• Prepare Report on the Institutional
  Compliance Program results v. plan
               U.T. System Audit Office, David B.   14
                         Crawford, 1999
                  Wrap-up
• Internal Audit’s Roles

• Division of Responsibilities between I/A
  and Compliance

• What kinds of Audit Work is Performed

               U.T. System Audit Office, David B.   15
                         Crawford, 1999
      Contact Information

• Web site:
  www.utsystem.edu/aud/resources
• E-mail: dcraw.utsystem.edu
• Phone: 512-499-4767
• Fax: 512-499-4550
• Address: 201 W. 7th ASH5,
  Austin,             Texas 78701
            U.T. System Audit Office, David B.   16
                      Crawford, 1999

				
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