1.
What is the audit process?
Interviews with appropriate department faculty will occur throughout
the process as needed. There will be an examination of departmental
records, equipment, controls over computer access, and compliance
with FHSU, Kansas Board of Regents, state and federal rules and
regulations. The supervisor of the audited area will be updated
on questions and findings as appropriate. When finished, the internal
auditor will prepare an audit report and discuss any finding with
the appropriate people. Once the supervisor has a chance to make
any necessary comments, a recommendation is made in the final audit
report. A follow-up audit will be conducted to ensure implementation
of recommendations.
2. What are cash handling procedures?
Each business operation will have unique and specific requirements
depending on their activities. There are some general control elements
needed in order to maintain a secure cash handling procedure.
Three objectives needed are: 1) recorded transactions are valid,
2) recorded transactions are properly authorized, and 3) transactions
are recorded on a timely basis and in the time period in which the
transactions take place.
Fundamental control elements include:
*Segregation of Duties-requires at least two employees be involved
in processing a transaction
*Restrictive endorsements
*Independent reconciliation control procedures
*Computerized control totals and edit tests
*Authorization of transactions
*Prenumbered documents and turnaround documents
*Periodic internal audits
*Competent, well-trained employees
If you have questions concerning your business operations, please
don't hesitate to give me a call.
3. What are internal controls?
Creating and maintaining a good system of internal controls is management's
responsibility. Internal Audit will help with new systems and can
provide evaluations of implemented systems, but the systems of internal
control is the responsibility of department management. Internal
controls provide reasonable assurance, meaning that benefits should
outweigh costs. Management will adjust the control systems as needed
to ensure that risks are being avoided. Examples of internal controls
would include:
* limit computer access to areas required by an employee's job responsibilities
through passwords;
* implement system of "checks and balances" to make sure
no one employee has too much control over an activity that mistakes
might go unnoticed and eliminate temptations of inappropriate activity;
* develop an approval system, such as on vendor invoices, check
requests, purchase orders, travel reimbursements, procurement cards,
and timecards; these systems often include different requirements
for various dollar amounts;
* provide controls on the handling and deposit of funds, including
timely deposits and restrictively endorsing checks and other processes
explained in the cash handling policies.; and
* periodic reconciliations of printouts and internal information.
4. Why were we selected to be audited?
Every year the internal auditor prepares an audit plan for the university.
Some of the issues that influence the plan include: economic changes;
changing student and community needs or expectations; new or changed
legislation or regulations; developing technology; changes in personnel,
information systems, management responsibilities, or educational
or research programs. There are various factors taken into consideration
in deciding who is audited, including: time of last audit; whether
past audit observations recommend a follow-up audit; and other risk
factors.
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