Internal Audit Department
Core Audit Areas
- Cash Handling. Audit activities can cover areas that handle large sums of money, but also areas that produce revenue handled through internal transfers. Internal cash control (including campus police and parking permits), cash collections/handling procedures (including credit card sales), record retention, cash advances, purchase card, bank accounts and reconciliation, billing, and receipts or revenue handling are part of this audit area.
- Payroll/Personnel. Audit activities can include ensuring terminated employees are properly removed from the payroll, leave reporting and time sheets are handled appropriately, etc. Hiring guidelines, diversity, etc. are part of this audit area.
- Property Control. Federal regulations require annual inventory verification. Equipment/capital/supplies inventory are part of this audit area.
- Auxiliary Operations. All institutions have several small auxiliary operations, and each institution must set its own materiality levels and internal auditor would define the scope of work in this important area.
- Tuition and Segregated Fee Revenues. Thorough documentation of the process and a good analytical review of revenue trends will limit the amount of testing needed to assure accountability. A review for compliance with Board and Institution policy can also be performed as needed.
- Major System Reviews. Major processes, or segments of major processes, could be reviewed. Data security is important in this audit area.
The frequency and scope of work performed in each of the core areas is based on the professional judgment of the Internal Auditor who determines the risk and materiality of these areas in relation to the institution as a whole.