Colorado State University System
DEPARTMENT OF INTERNAL AUDITING
Fort Collins, Colorado
Frequently Asked Questions
| Q: | Where is the Internal Audit Department located? |
| A: |
We are located in room 301 Johnson Hall, on the South East part of the oval on the Colorado State University Campus. We also have an office located in the basement of the Administration Building, on the Colorado State University - Pueblo Campus. |
| Q: | What services do you perform? |
| A: |
We perform financial, operational and compliance reviews of departments, colleges and processes throughout the Colorado State University System. |
| Q: | How do you select areas for review? |
| A: | Annually, the Director of Internal Auditing prepares an Audit Plan for the CSUS Institutions. Audits are selected from the CSUS inventory of audit projects master schedule for each institution. |
| Q: | If our area is selected for a review, what should we expect? |
| A: |
A notification is sent to the President and department head when an audit is initiated. An entrance conference is held to discuss purpose and objective. Fieldwork is performed, i.e., evaluation of the departments systems of internal control and tests the compliance with these controls by tracing a sample of transactions through the operation's process. A preliminary exit meeting will be held, a draft audit report will be written and then an exit conference will be set. Before a final audit report is completed, responses to the audit recommendations received from management are included. A follow-up review is then scheduled usually 6 months after the original audit in order to determine the status of the recommendations. Follow-up reviews continue every 6 months until all recommendations are implemented or otherwise closed. |
| Q: | Are auditors looking for fraud when performing audits? |
| A: | Auditors are not specifically searching for the existence of fraud when performing audits. However, the performance of generally accepted auditing procedures would identify certain types of fraud. An adequate system of internal control and a control conscious organizational environment will reduce the risk of fraud. |
| Q: | What are internal controls? |
| A: | Internal Controls can be categorized as either accounting controls or administrative controls. Accounting controls are designed to safeguard University assets and ensure the accuracy of financial records. Administrative controls are designed to promote operational efficiency and adherence to University policies and procedures. Internal Auditing reviews the adequacy of both accounting and administrative controls during audit engagements. |
| Q: | Are the internal auditors responsible for maintaining the University systems of internal control? |
| A: | No. University administration is responsible for maintaining an adequate system of internal control. Internal Auditing's mission is to independently evaluate the adequacy of the existing University internal control systems by analyzing and testing controls. Internal Auditing makes recommendations to management to improve controls based on system testing and control analysis. |
| Q: | What is operational auditing and are operational audits performed at CSUS Institutions? |
| A: |
Internal Auditing performs operational audits when auditing University systems and procedures. Operational auditing is an auditing method whereby auditors review the adequacy of existing systems and procedures as a businessperson would evaluate his/her business enterprise. Operational auditing is designed to evaluate administrative efficiency and adherence to University policies and procedures. Operational audits result in recommended cost savings and/or operational improvements. |
| Q: | What is the relationship between the internal auditors and the outside public accountants who audit the University accounting records? |
| A: | The outside auditors review the adequacy of supporting documentation for the financial statements for the purpose of expressing an opinion on the reasonableness of the financial statements. They also review the adequacy of major systems accounting controls (not administrative controls) to determine the extent to which financial statement audit procedures can be restricted. |
| Q: | Can University personnel seek advice from Internal Auditing regarding internal control when an audit is not being performed? |
| A: | Yes. Internal Auditing acts as in-house consultant on internal control matters and provides guidance on control aspects of new systems and procedures. The Director of Internal Auditing should be contacted for internal control guidance. |
| Q: | Must the Auditee always implement audit report recommendations? |
| A: | No. While the adoption of Internal Auditing's recommendations is encouraged, we do not have directive authority. In most instances auditees implement suggestions. However, auditees may choose different procedures to correct control concerns identified during the audits. |
