Office of Internal Audit
Specific procedures vary from one engagement to the next; however, six stages are involved in every audit process:
- Plan the audit.
- Obtain an understanding of the client and its environment, including internal control.
- Assess the risks of misstatement and design further audit procedures.
- Perform further audit procedures and complete the audit.
- Review and obtain comments regarding the audit report from the department’s management.
- Form an opinion and issue the audit report.
As stated in the International Professional Practices Framework, written by The Institute of Internal Auditors, “Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.” An internal audit involves auditing procedures and techniques conducted by Internal Auditors primarily concentrating on adherence to management policies, existence of proper internal controls, uncovering misappropriation of funds (i.e., fraud), existence of proper record keeping, and effective operations of the business.
The audit process can provide the departments within Binghamton University with substantial information regarding their strengths and weaknesses. Internal audit uses a systematic and disciplined approach in order to add value to the University. The Office of Internal Audit uses the audit process to offer ways to improve the efficiency and effectiveness of operations.
Internal audits examine controls over one or more of the following:
- Compliance with State and Federal laws, regulations, and University policies and procedures.
- Safeguarding the assets of the University.
- Accurately recording financial transactions within a reasonable amount of time.
- Efficient and appropriate use of University resources.
- Effectiveness and efficiency in achieving departmental goals and objectives.