internal audit

2. 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.

3. 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.

4. SERVICE PROVIDED
General Audits
• Financial
• Compliance
• Operational
Special Investigations
Consulting

5. 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

6. INTERNAL CONTROL COMPONENTS
 Monitoring
 Control Environment
 Risk Assessment
 Control Activities
 Information & Communication

7. Supervising
Observing
Testing
Reporting to Responsible Individuals

8. Evaluation of Trends
Reviews of Outstanding Encumbrances
Surprise Cash and Asset Counts
Follow-up on complaints
Review of Financial Reports
Spot Checking of transactions to ensure compliance with policies and procedures

9. RISK ASSESSMENT
Is the identification and analysis of relevant risks associated with the
achievement of objectives
Is an ongoing process that is a critical component of an effective internal control
system

10. 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

11. Internal 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

12. 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

13. BENEFITS OF INTERNAL AUDIT
• Pragmatic, business oriented advice
• Local knowledge of policies, procedures, culture and environment
• Conduit to other resources

14. THANK YOU