Internal Audit

Internal Audits objective is to serve the students and to enhance and protect the university. This is accomplished by providing independent auditing and consulting services to assist management in balancing operational efficiency with risk identification, assessment and control. We report to the board of trustees and collaborate with management to enhance assurance and accountability at all levels of the university community. We will work with you to find solutions that strengthen your internal controls and help manage risk.

Audits/Assurance Services

Audits and assurance engagements include planned reviews of compliance, operations, information technology, finance, and internal controls. They also include integrated audits which incorporate more than one of those categories in a single engagement. Audits are typically included on our office’s annual audit plan (work plan), and they result in a formal audit report that includes an overall opinion of the area under review and any findings and recommendations that were identified.

Administrative Reviews

Administrative reviews begin with a risk assessment to determine the most important issues to the area based on risk and management's requests. Administrative reviews often include assessments of items such as:

Financial processes and transactions
Cash handling
Fixed assets and computer inventory management
Payroll and personnel
Policies
General controls and access rights
Academic areas including admission procedures and the awarding of scholarships
Tax issues including unrelated business income tax, sales tax, and fringe benefits
Governance structure and communication

Compliance Reviews

During a compliance review, operations are compared to external regulations such as those of a Federal, State, or accrediting agency. Our recommendations are intended to help management fully comply with the established regulations.

Information System Reviews

Information system reviews include many different topics such as:

System, software, and document access
Document storage and retention
Credit card compliance
Business continuity and disaster recovery planning
Online presence
Physical security of computer assets

Benefits

Audit and assurance services provide numerous benefits to management. They can:

Determine adequacy of internal controls
Promote best practices for controls
Ensure compliance with policies and regulations
Identify operational inefficiencies and waste
Review IT projects, systems, and technology
Provide objective insight
Assess efficient and responsible use of resources
Identify potential cost savings
Assist management in addressing complex, cross-functional issues

Our office completes audits based on risk, time since last audit and management requests to ensure we are best meeting UNCP's needs.

What to Expect

Your Involvement

Most of the audit work is done behind the scenes at our office; however at times we will need your assistance:

Entrance Meeting with key leaders in your area to discuss the audit process and the anticipated audit scope.
Risk discussions with management includes meeting individually with key leaders and select staff to gain an overview of their area of operations and the related risks.
Notify staff members of fraud reporting hotline - Internal Audit and/or NC State Auditor.

Fieldwork is the phase in which we conduct testing. We may need to meet with staff to obtain supporting documentation, to better understand processes, or to discuss potential areas of concern.
Draft report/Draft observations. You will receive draft copies of the report and any observations prior to the exit meeting.
Exit meeting is conducted with key leaders in your area to discuss the results of the audit.
Provide responses to any findings. You will have the opportunity to formally respond to any audit findings.
Final review of draft report. A final draft of the report with your responses to findings will be shared with you before the report is released.
Report is issued.
Follow up

Consulting/Advisory Services

Internal Audit provides consultative and advisory services which are intended to provide advice and information on internal controls, risk management and sound business practices. This includes reviewing current practices, interpreting policies and procedures, participating on standing committees, completing limited-life projects, attending ad-hoc meetings and responding to routine questions. In addition, our advisory work includes work with UNC System Office and several professional organizations and serving as liaisons between the University and various external auditors.

Investigations

Investigations are conducted in response to suspected fraud, waste or abuse of university resources. We evaluate the actions and intent of the individuals and offices involved.

Charter

University Policies & Regulations

What is Internal Audit?

When most people think of auditing the first thing that comes to mind is, financial auditing. While this is an important aspect of auditing, it is only one small facet. The Institute of Internal Auditors defines internal auditing as "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.

What are some typical services our office provides?

Consult with management and provide methodologies, facilitation, focus, knowledge, technology, best practices and independence that help solve problems.
Verify the existence of university assets and ensure proper safeguards for their protection.
Evaluate the reliability and integrity of data produced by information systems.
Assess the extent of compliance of each area with applicable laws, regulations, accreditation standards, policies and procedures.
Evaluate the adequacy of the internal control structure within a department or unit.
Investigate concerns relating to fraud, embezzlement and theft.

What is reviewed and why?

Internal Audit develops an annual audit plan (work plan) to identify the engagement projects to be conducted during the upcoming fiscal year. Throughout the year the audit plan may be amended to include requested reviews, special projects or changes in priority.

Some of the things we consider when developing our audit plan include:

To what extent is the process or area required to comply with state or federal regulations?
Is this area subject to a great deal of public scrutiny?
Has recent organizational change occurred?
What is the volume of activity?
How reliant is the area on technology?
When was the last time Internal Audit reviewed it?
Have concerns about conduct resulted in a requested review?
Does management have concerns that they’d like us to look into? Concerns can be about the internal structure, regulations, complexity of operations or any prior audit findings

The annual audit plan is reviewed and approved by the Audit Committee of the UNCP Board of Trustees and the Chancellor.