How the Internal Audit Department decides which units to audit

May 20, 2015
Categories: General News Tags: Business Affairs

The annual audit planning process takes into account a number of factors to determine which campus units will be visited.

Julie Earls, an internal auditor in the Internal Audit Department, stated, “Our internal audit professional standards require UNC Charlotte’s chief audit officer to establish a risk-based audit plan that considers the University’s goals. In other words, what could keep the University from achieving its objectives?”

The audit plan is a direct result of a risk assessment, she added.

“To assess the University’s risk, our chief audit officer performs interviews with senior leadership and administers a risk survey. These two activities provide insight into relevant risks the University faces or expects to face in the near future” said Earls.

In creating an audit plan, the Internal Audit Department considers the “audit universe,” which is the list of all possible audits that could be performed – from an entire college to a single process or event.

“Here at the University, there are many areas that have never been audited,” Earls stated. “The audit universe is constantly evolving. If an area has never been audited before, the risk increases.”

Audits are conducted based upon risk, because the Internal Audit Department is endeavoring to help the University achieve its objectives, explained Earls. “We evaluate and improve areas with significant risks, and, in turn, we help the University function more effectively and efficiently while ensuring compliance with relevant laws, rules and regulations. We strive to help campus units identify and fix any issues before they become a problem that could damage the University’s reputation and ability to provide quality education to students.”

Inside UNC Charlotte, during May (Internal Audit Awareness Month), is publishing a series of short articles on topics to help the campus better understand the role of internal audit. Next week, watch for an article on the types of audits the Internal Audit Department conducts.