Audit Follow-Up Policy
This policy defines the: (a) purpose, (b) timing, (c) scope, (d) review of findings and (e) Report of Audit Follow-up performed by the Office of Internal Audit.
The purpose of an audit follow-up is to affirm what actions have been taken by department management relative to criticisms, comments and recommendations from previous audit report(s). Management should be fully aware that their comments responding to the audit report(s) will be checked out to affirm that management has actually done what was specified therein.
The Audit follow-up will be done at least six months following issue of the final audit report(s) and not less than six months prior to the next scheduled full audit.
The audit follow-up will be limited to review of comments in the audit report(s) being used as the basis of review for the follow-up examination. The scope of the original audit may only be expanded when a condition is noted, while performing the above follow-up work, which indicates the potential for fraud, gross mismanagement, or deceit in representations made to auditors and senior management in responding to comments, criticisms, and recommendations presented in the audit report(s).
REVIEW OF FINDINGS:
It is necessary that all deficiencies identified during the course of the audit follow-up and enhancements to the follow-up scope where found appropriate, be discussed point-by-point with management prior to the issuance of the Audit follow-up Report.
An explanation must be received from management on each deficiency identified as to:
- Why the previously reported
condition was not corrected or why the recommendation was not acted upon and/or
- Why commitments made in writing,
in responding to the audit report findings were not performed as so indicated
in the final audit report.
- Why findings of the enhanced follow-up scope, if found warranted, were permitted to happen or continue to exist, and what will be done to correct such conditions noted.
REPORT OF AUDIT FOLLOW-UP:
The Report of Audit Follow-up will be limited to exceptions identified only during the audit follow-up, with a separate part of the report used to describe areas of concern identified in the enhancement of scope, if necessary.
Every deficiency identified in the audit follow-up should be clearly described in the Report of Audit Follow-up along with the following as appropriate:
- Why the condition was not
corrected, following inclusion in the prior final audit report(s).
- Where management committed itself
in writing to take corrective action on a point in the prior audit report(s)
but failed to do so.
- When management is now committed to take the required corrective action on the points where it failed to react fully in the past.
The Report of Audit Follow-up will be issued timely upon the completion of the follow-up fieldwork.
AUDIT FOLLOW-UP REPORTING:
The Audit Follow-up report is presented to the Chancellor and other officials by means of a transmittal letter. The letter contains a summary which highlights the purpose, scope, and recommendations of the Audit Follow-up.
The signed transmittal letter to the Chancellor shall be bound with the report. For other officials who receive a copy of the report, a copy of the signed transmittal letter should be bound inside the report, behind the title page.