2400-Opening Conference With Management

 

The opening conference is an important step in a regular audit. It is an opportunity to establish the proper atmosphere and to begin building good relationships. Explain who, what, where, when, why and how for those who have not been exposed to the audit process.

 

Points to cover in the opening conference and to document in the Opening Conference Minutes are:

 

1.      Emphasize that the purpose of an audit is to help improve McNeese State University controls and operations, not to find something wrong.

2.      Review the purpose and nature of the audit. The general objectives of an audit are routine to the auditing department but often mysterious to the auditee(s). Encourage management to participate in the discussion of the purpose, scope and audit steps and to ask questions concerning any aspect of the audit.

3.      Ask for suggestions of potential auditee problem areas within the audit scope. This communicates an intention of being helpful rather than critical.

4.      Determine if the audit is considered neither appropriate nor timely and be open to discussing the auditee's comments with your Campus Director of Internal Audit.

5.      Determine what assistance from personnel other than those attending the opening conference is needed to answer detailed questions concerning the functions being performed. Contact should be made via the "Chain of Command" until an understanding with the appropriate manager is established.

6.      Explain how audit concerns (observations) are handled. Some findings may be resolved orally. Explain that concerns will be reviewed with the designated auditee at the time they arise and identify who will be responsible for reviewing the audit concerns. Explain that audit concerns are documented for our internal purposes.  The purpose of discussing each audit concern is to verify that both the facts defined in the concern and the impact of the concern are accurate.

7.      Establish how frequently the department head/director wants to be updated on audit progress and findings.

8.      The draft audit report will also be reviewed in detail.

9.      Explain that a copy of the final audit report will be sent to the responsible Department Head, the Dean (if appropriate), the appropriate Vice-President, the President and the University of Louisiana System Director of Internal Audit (this list will be reviewed at the exit conference).

 

10.  Explain that any information obtained during the audit is considered confidential, and audit reports are exempt from disclosure under the provisions of the Freedom of Information Act.

11.  Inquire about working hours, working area, access to records and any other information that details the office routines. This information may have considerable influence on the cooperation extended to the audit staff.

12.  If possible, identify which, if any, data files will need to be defined for audit access.

13.  To conclude, ask if there are any questions concerning anything discussed at the opening conference or any questions in general about the auditors or audit approach that will assist the auditees in their understanding of the audit project.

14.  Effective communication at the beginning of the audit can materially influence the atmosphere in which the entire audit is conducted. It can mean the difference between active cooperation and open hostility. It deserves careful attention and best efforts.

Opening Conference Minutes

The Opening Conference’s date, key attendees and substantive items discussed which are directly related to audit scope, objectives, timing or confidentiality should be documented in the workpapers. Such items may include possible reorganizations of the department, auditee requests for delaying the audit due to poor timing or unusual circumstances, special concerns of the auditee, etc. If such items were not part of the opening conference, nothing more than the date and attendees is required. Though it should be covered in the meeting, it is not necessary to document discussion of our audit process.

 

 

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