int 101: how to pass an audit...kelly mintern assistant director minternk 2-3088 shelley morris...
TRANSCRIPT
![Page 1: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/1.jpg)
INT 101: How to Pass an Audit
An Introduction to Internal Controls
![Page 2: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/2.jpg)
• Introductions
• Internal Audit Overview
• Basic Internal Controls
• Internal Control Examples
• How to “Pass” an Audit
Course Overview
![Page 3: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/3.jpg)
Introductions
![Page 4: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/4.jpg)
Who are the staff members in Internal Audit?
![Page 5: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/5.jpg)
Internal Audit Staff
Name Title Email Phone
Stefanie Powell Chief Audit Executive powells 2-3457
Kelly Mintern Assistant Director minternk 2-3088
Shelley Morris Auditor morriss 2-3835
Cynthia Nickerson Auditor nickersonc 2-3857
Monica Crump Intern mlc1282
![Page 6: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/6.jpg)
What is Internal Audit?
![Page 7: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/7.jpg)
Internal Audit is:
• Part of UNCW
• Independent in nature
• Reports to the Audit, Risk and Compliance
Committee of the Board of Trustees
• Designed to protect the university
• Required under the North Carolina Internal Audit Act
• Charged with conducting audits, consultations and
investigations
Internal Audit Overview
Here to help!
![Page 8: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/8.jpg)
What will I learn in this course?
![Page 9: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/9.jpg)
What are internal controls?
![Page 10: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/10.jpg)
• Formal definition
• Processes designed to help an organization
accomplish specific goals or objectives
• Informal definition
• Things you do to make sure things get
done right
• Examples
• Reviewing your bank account
• Counting inventory
• Reviewing work
Internal Controls
![Page 11: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/11.jpg)
What happens when there are no internal controls?
![Page 12: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/12.jpg)
• Could lead to fraud
• Is more likely to lead to errors
Lack of Internal Controls
![Page 13: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/13.jpg)
What internal controls should I use?
![Page 14: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/14.jpg)
• No one should control any process from start to finish.
• No one should approve their own expenditures.
• Internal controls are built into uShop, Works, and
Chrome River
• No one should approve an action who might benefit.
Internal ControlsSegregation of Duties
![Page 15: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/15.jpg)
Internal ControlsRegulations, Policies, and Procedures
Federal Regulations/Accreditation Requirements
State Regulations
UNC Policies
UNCW Policies
Departmental Procedures
![Page 16: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/16.jpg)
Documented procedures help:
• Current employees do their jobs
• New employees learn their jobs
• Evaluate employee performance
• Minimize problems if an employee is
not at work
Internal ControlsProcedures
![Page 17: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/17.jpg)
Procedures should be:
• Consistently used
• Familiar to all employees
• Located in a central location
• Sammy, SharePoint, OneDrive
• Regularly updated and reviewed
Internal ControlsProcedures
![Page 18: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/18.jpg)
• Ensure policies are followed and
exceptions documented
• Check documentation requirements of
responsible office
• Obtain and maintain original supporting
documentation when possible
• Document all unusual situations
Internal ControlsDocumentation
![Page 19: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/19.jpg)
• Review by appropriate person
• Always know what you are signing
• Never sign a blank form
• Don’t let others sign your name or
initials
Internal ControlsApproval and Authorizations
![Page 20: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/20.jpg)
What are some specific examples?
![Page 21: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/21.jpg)
• Change funds should be established through the
Accounting Department
• Collect cash in as few locations as possible
• Make deposits at least as frequently as required by law
• Do not use bank accounts except the organization’s
formal ones
• A log or receipt book should be maintained
• Credit card receipts should be properly signed and
submitted with the deposit
• Combinations to safes should be regularly updated
• Be familiar with UNCW’s departmental funds receipting
policy
Control ExamplesAssets - Cash
![Page 22: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/22.jpg)
• Keep records of all items
• Report gifts-in-kind to Advancement
Services
• Include items below fixed asset
threshold such as desks
• Photos are helpful
• Track iPads
• Conduct inventory counts at least
annually
Control ExamplesAssets - Other
![Page 23: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/23.jpg)
• Each user of a system should have their
own login credentials
• Keep username and password
information secure
• Regularly review users’ access
• Know where information is stored and
protect it
Control ExamplesSystem Access and Use
![Page 24: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/24.jpg)
• Documented procedures
• Backup and cross training for all critical
functions
• Current, approved Continuity of
Operations Plan
Control ExamplesBusiness Continuity
![Page 25: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/25.jpg)
• Ensure transactions are recorded accurately.
• Ensure revenue and expenditures are in the right place
• Reconciliations
Control ExamplesFinancial Activity
![Page 26: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/26.jpg)
• Physical security
• Training
• Job descriptions
• Communication
• Formal
• Informal
• Take vacation!
Control ExamplesOther
![Page 27: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/27.jpg)
How do I make time for these activities?
![Page 28: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/28.jpg)
• Fridays during summer hours
• Slower times of the year
• Get extra help
• Create goals and deadlines and hold
people accountable
• Speak with your supervisor about
prioritizing time
Finding Time to Improve Internal Controls
![Page 29: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/29.jpg)
How can I “pass” an audit?
![Page 30: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/30.jpg)
• Comply with all external guidance
• Create and utilize departmental
procedures
• Document well
• Ensure appropriate authorizations
• Secure cash and all other assets
• Protect electronic data
• Plan for business continuity
• Train, communicate, and take vacation!
Reminders
![Page 31: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/31.jpg)
What if something doesn’t seem right?
![Page 32: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/32.jpg)
Fraud, Waste, and Abuse Reporting
Agency/Office Website Phone/Email
Office of the State Auditor
www.ncauditor.net 1-800-730-TIPS
Office of State Budget andManagement
www.osbm.nc.gov/management/fraud
UNCW Office of Internal Audit
www.uncw.edu/ia 2-3457
![Page 33: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/33.jpg)
Where can I get more information?
![Page 34: INT 101: How to Pass an Audit...Kelly Mintern Assistant Director minternk 2-3088 Shelley Morris Auditor morriss 2-3835 Cynthia Nickerson Auditor nickersonc 2-3857 Monica Crump Intern](https://reader034.vdocuments.mx/reader034/viewer/2022042408/5f23eb0949ec9d1d91036a45/html5/thumbnails/34.jpg)
Office of Internal Audit
Hoggard 185