1400-Policy on Internal Auditing

 

McNeese State University supports an Office of Internal Audit as a staff and independent appraisal function. The Office of Internal Audit examines and evaluates University business and administrative activities. The primary objective of the Office of Internal Audit is to assist all levels of management of the University in the effective discharge of their responsibilities.  Internal auditing furnishes them with analyses, recommendations, counsel and information concerning the activities and records reviewed. The Office of Internal Audit reports both to the President of the University and to the System Director of Internal Audit. In carrying out their duties and responsibilities, the internal auditing office has full, free and unrestricted access to all of the University activities, records, property and personnel.

 

Internal auditing is a management control that functions by measuring and evaluating the effectiveness of other managerial controls. The internal auditing function is the responsibility of the Office of Internal Audit. The University President appoints the Campus Director of Internal Audit. The Campus Director prepares, for approval by the President, an audit plan that identifies the individual audits to be conducted during the year.

 

Objectives of Audits and Reviews

The work of the Office of Internal Audit includes the following general objectives:

·        Determining that the University's overall internal control system and departmental administrative controls or activities are adequate, effective, efficient and functioning.

·        Determining the reliability and adequacy of the accounting, financial and reporting systems and procedures.

·        Determining, on a test basis, that University activities (including grants and contracts received or made) conform with University policies and procedures, state and federal laws and regulations, contractual obligations and good business practices.

·        Determining the extent to which University assets are accounted for and safeguarded from losses of all kinds, and verifying, on a test basis, the existence of assets.

·        Evaluating operational procedures to determine whether results are consistent with established objectives and goals, and whether the procedures are carried out as planned.

·        Evaluating the design of major new electronic data processing systems and major modifications to existing systems before installation to determine whether the system of internal control is adequate, effective and efficient.

 

Sufficient information regarding system internal controls must be provided to the Office of Internal Audit before installation. This information is needed to avoid the additional cost and interruption of revising and correcting inadequate system controls for a newly installed or modified system.

 

In addition, the Office conducts investigations, as required or directed.

 

Scope of Audit Coverage

The general scope of audit coverage is University-wide and no function, activity or department of the University is exempt from audit and review. No officer, administrator or staff member may prohibit the auditors from examining any University record or interviewing any employee or student that the auditors think relevant to their audits and reviews. Additionally, the Office of Internal Audit has authority to audit the accounts of all organizations required to submit financial statements to the University.

 

Auditing Procedures

The Office of Internal Audit conducts audits and reviews according to generally accepted auditing standards. Specific audit programs techniques and procedures are used that are considered necessary under the circumstances. The internal audit function is carried out in accordance with the Statement of Responsibilities and Code of Ethics defined by the Association of College and University Auditors.

 

Performance standards for the audit function are defined in the Audit Manual of the Office of Internal Audit and developed from the following:

·        The Standards for the Professional Practice of Internal Auditing (Institute of Internal Auditors)

·        Statement on Auditing Standards (American Institute of Certified Public Accountants)

·        The Standards for Audit of Governmental Organizations, Programs, Activities and Functions (Comptroller General of the United States)

 

Limitation Of Authority And Responsibility

In performing their work, the Office of Internal Audit has neither direct authority over, nor responsibility for, any of the activities reviewed. The Office does not develop and install procedures, prepare records, make management decisions or engage in any other activity that could be reasonably construed to compromise their independence. Therefore, internal audit reviews and appraisals do not, in any way, substitute for or relieve other University personnel from their assigned responsibilities.

 

 

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