OM 7.17.0 Relations with External Auditors
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Effective Date: February 1992 |
Policy Contact: Controllers Office |
Scope
The University is subject to audits by various agencies of the government for either financial accountability or regulatory compliance audits. In addition, the University may subject itself to audits by external organizations for its own purpose. This policy is intended to establish a central control and liaison for all audits being performed regardless of the type of persons performing the audit.
Designation
The vice president for Business and Financial Affairs or his designated representative is the central contact for all audits being performed on the campus. If contacted directly by any auditor that is not being directed by the Office of the Comptroller, the auditor should be directed to contact the vice president for Business and Financial Affairs. This will insure that the auditor is being properly assisted and provided with all support necessary to complete the assigned tasks with a minimum of disruption to operations and insure continuity with regard to information.
Entrance Conference
Normally an entrance conference will be held to establish the purpose, scope, and timing of the audit. This will enable the vice president for Business and Financial Affairs to determine the physical facilities needed and arrange for contact with other departments on campus for availability of information and/or knowledgeable personnel affected by the audit.
Contact During Ongoing Audits
After the audit commences and until conclusion, it is important for the vice president for Business and Financial Affairs to maintain contact with the auditor-in-charge. As requested, the vice president for Business and Financial Affairs will arrange additional interviews, secure additional required documents, answer questions, and supplement interviewee statements. The purpose of such contact is to expedite the audit and to correct any erroneous information that may have been given inadvertently
Availability of University Records
Auditors should request from the chief accountant or comptroller the records required. The chief accountant or comptroller will inform the auditor as to the best place, time and method of securing records. University personnel will furnish the auditors with all records or data requested. Auditors should not have access to any records or data except those provided by University personnel.
University personnel will inform auditors where to return records. All refiling will be done by University personnel.
In cases where it is necessary to remove records from an office, the auditor will secure the approval of the supervisor. The auditor will comply with the office procedures for identifying records removed from the files, including listing and signing for records removed.
Any problems should be referred to the vice president for Business and Financial Affairs.
Use of University Computer Facilities
There may be instances where the auditors require the use of University computer resources to facilitate an audit. In such cases, the auditor-in-charge should transmit a request through the vice president for Business and Financial Affairs describing the need for programming, system analysis, and computer time in the most specific terms possible. The request should be made sufficiently in advance of need for the services so that arrangements can be made.
Availability of Findings and Exit Conferences
The purpose of the exit conference is to inform University representatives of the audit findings, to clarify possible misunderstandings, and to identify the issues that are unresolved.
In some circumstances, the University may be asked to make preliminary comments on findings concerning specific transactions. In such cases, auditors are expected to provide sufficient information, including reference to specific sponsor policy, to enable the University to adequately review the question(s) and provide a meaningful response.
When audits are of limited scope and a formal exit conference involving several people is not practical or justified, the auditors should notify the vice president for Business and Financial Affairs when the fieldwork is complete.
Scheduling of exit conferences will be the responsibility of the vice president for Business and Financial Affairs.
Audit Reports and Responses
A copy of the audit report will normally be sent by the auditors to the vice president for Business and Financial Affairs whose office will then secure comments, coordinate or prepare the University response and maintain a central file of all audit reports, responses, and related correspondence.
History
February 1992
Editorial Revision, December 2019