INTERNAL AUDIT

PREETIROLL NO-8

Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

INTERNAL AUDIT MISSION

• The mission of Internal Audit is to assist all levels of administration in the achievement of the College goals and objectives by striving to provide both quality customer service and a positive impact on the efficiency and effectiveness of administrative functions. 

•• The Office achieves this impact by providing ongoing,

objective, and independent reviews of internal controls and independent appraisals (i.e. audits), analyses, and counsel related to the assessment of business risk.

SERVICE PROVIDED

General Audits• Financial• Compliance• Operational

Special Investigations

Consulting

AUDIT ACTIVITIES (SELECTED)

Determine the accuracy and validity of financial transactions

Evaluate the financial and operational procedures for adequacy and effectiveness of internal controls

Verify the existence of College assets and ensure that assets are adequately safeguarded against loss

Evaluate the adequacy related to information relied on during management’s decision-making

INTERNAL CONTROL COMPONENTS

Monitoring Control Environment Risk Assessment Control Activities Information & Communication

MONITORING (INTERNAL CONTROL COMPONENTS)Supervising

Observing

Testing

Reporting to Responsible Individuals

MONITORING ACTIVITIES INCLUDE

Evaluation of TrendsReviews of Outstanding EncumbrancesSurprise Cash and Asset CountsFollow-up on complaintsReview of Financial ReportsSpot Checking of transactions to ensure compliance

with policies and procedures

RISK ASSESSMENT

Is the identification and analysis of relevant risks associated with the achievement of objectivesIs an ongoing process that is a critical component of an effective internal control system

EXTERNAL RISK FACTORS INTERNAL RISK FACTORS

Changing student & community needs

New/changed legislation & regulations

Technological developments

Natural catastrophes

Competitive conditions

Economic changes

New Personnel Low Morale Competency & Integrity of

Personnel New or Revamped Information

Systems Size of Organization Complexity & Volatility of

Activities Geographical Dispersion of

Operations Changes in Management

Responsibilities

INTERNAL CONTROL RESPONSIBILITY- AUDITORInternal auditors are responsible for:• Examining the adequacy and effectiveness of the

College’s internal controls, • Making recommendations where control

improvements are needed• Contributing to the effectiveness of the control

environment

INTERNAL CONTROL AND INTERNAL AUDITING

Internal Auditing helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of …Risk management

Control

Governance Processes

BENEFITS OF INTERNAL AUDIT

• Pragmatic, business oriented advice• Local knowledge of policies, procedures,

culture and environment• Conduit to other resources

THANK YOU