Internal Auditing at PSU, Questions and Answers

 

1. What do internal controls provide?

Accounting controls are designed to safeguard PSU's assets and ensure the accuracy of PSU's financial records.

Administrative controls are designed to promote operational efficiency and adherence to PSU's policies and procedures.

2. Who is responsible for maintaining PSU's system of internal control?

PSU's management is responsible for establishing and maintaining an adequate system of internal control.

Internal Audit is responsible for evaluating the adequacy of the existing controls and for making recommendations for improvement.

3. What types of internal reviews are conducted?

    Financial
    Compliance
    Contract and Grant
    Electronic Data Processing
    Departmental
    Operational
    Surprise Cash Counts
    Capital Equipment Inventory

4. To whom does Internal Audit report?

The Internal Auditor reports directly to PSU's President and indirectly to the Kansas Board of Regents.

5. Who receives the Internal Audit reports?

The Internal Audit reports, including the auditee's responses to any recommendations that are made, are routinely routed to the responsible Department Chair or Director, the Dean (if appropriate), the appropriate Vice- President, the President, and upon request to the Kansas Board of Regents.

6. Why were we selected to be audited?

Most areas audited are selected based on an annual evaluation of risk performed by the Internal Auditor. However, some audits are based on specific requests by PSU's Administration, the audited area, and/or the Kansas Board of Regents.

7. What happens during the audit?

  • The audit will generally start with an entrance interview with the department manager and other key members of the staff.
  • Additional in-depth interviews will likely follow. Then an examination of departmental records, equipment, controls over computer access, and compliance with PSU, Kansas Board of Regents, state federal rules and regulations will be performed. The scope of the work performed will be controlled to a great degree by the auditor's perceived risks of the audit area. The manager of the audited area will be updated on the audit questions as they develop.
  • At the end of the audit work an exit interview will be held to discuss a draft of the proposed report including any findings that may be included in the report. The manager of the audited area will have an opportunity to rebut any findings and to be involved in formulating any recommendations that are necessary.

8. Will the Internal Auditor be reviewed?

Yes, we are required by Internal Auditing Standards to have a quality assurance review by our peers.

9. What professional standards and procedural guidance do the internal auditors follow?

    Government Auditing Standards of the US General Accounting Office
    Standards for the Professional Practice of Internal Auditing
    The Institute of Internal Auditors Code of Ethics
    Kansas Board of Regents Policy and Procedures Manual
    PSU Audit Charter

10. Internal Audit will not:

Direct PSU faculty or staff to change work methods or take corrective action to solve audit questions. Make financial or operating decisions.

These directions and decisions are the exclusive responsibility of management, including Department Chairs and Directors.

Internal Audit will (on a non-audit basis), if requested, discuss and make suggestions for preventive actions related to establishing or improving internal control and/or opportunity.