If you are like many directors or department heads, you may not have requested an
internal audit. The University conducts a regular, ongoing examination of its internal
controls; and, as part of this process, the Office of Internal Audit conducts numerous
audits annually. Regular audit reviews for many units are scheduled on a rotating
cycle; some reviews are selected on a random basis. A small percentage of internal
audits are initiated to investigate possible irregularities.

Yes, an audit can produce many benefits, and timing can be an important factor. If
you have recently assumed new or additional supervisory responsibilities, an audit
can review administrative procedures to assess whether internal controls in that unit
are adequate. It is also beneficial to assess system controls and modified office
procedures when new computer systems are being installed.
A periodic “checkup” to review your unit’s administrative activity can help ensure
that your procedures continue to comply with University policy. An audit is an opportunity
to receive an independent appraisal of the effectiveness and efficiency of your unit’s
administrative activities.
Anyone within the University community can request an audit. You should coordinate
the request with your Dean or supervisor who should subsequently inform the appropriate
Vice President. If you suspect someone is involved in something illegal, you may notify
us directly. At your request, we will make every effort to maintain confidentiality.

The Office of Internal Audit will contact you to schedule a meeting to discuss the
scope of the review and the logistics of conducting the audit. At this initial meeting,
you should take the opportunity to discuss any concerns or questions you may have
about the audit, and to determine how you can facilitate the review process. A typical
audit has several stages, including preliminary research, data collection and analysis,
review, preparation and distribution of a report, and follow-up.

Audits can last from several days to several months. The auditor will give you a reasonable
estimate of the time needed to complete the audit.

You and your staff will be kept apprised of the auditor’s findings throughout the
course of the audit. At the conclusion of the audit, you will be able to review a
draft of the report before the final version is issued. Except for special reports
requested by a government agency, all audit information is treated as confidential
and reported only to those within the institution who need to know.

Final audit reports are distributed to the University of Louisiana System Audit Committee,
President, Provost, Vice Presidents, the Dean or your supervisor, and you. In addition,
the State Legislative Auditor has access to all regular audit reports.

FINANCIAL AUDITS address questions of accounting and reporting of financial transactions,
including commitments, authorizations, and receipt and disbursement of funds. The
purpose is to verify that there are sufficient controls over cash and cash-like assets
and that there are adequate process controls over the acquisition and use of resources.

COMPLIANCE AUDITS determine the degree of a unit’s adherence to laws, regulations,
policies, and procedures. Examples of external requirements include Federal and State
laws, NCAA regulations, and Federal and State OSHA regulations. Recommendations often
call for improvements in processes and controls intended to ensure compliance with
regulations.

INFORMATION SYSTEM (IS) AUDITS address the internal control environment of automated
information processing systems and how people use those systems. IS audits typically
evaluate system input, output, processing controls, backup and recovery plans, system
security, and computer facility reviews. IS auditing projects can focus on existing
systems as well as systems in the development stage.

OPERATIONAL AUDITS, sometimes called program or performance audits, examine the use
of unit resources to evaluate whether those resources are being used in the most efficient
and effective ways to fulfill the unit’s mission and objectives. An operational audit
includes elements of a compliance audit, a financial audit, and an IS audit.

ADMINISTRATIVE INTERNAL CONTROL REVIEWS focus on the departmental level activities
that are components of the University’s major business activities. Areas such as payroll
and benefits, cash handling, inventory and equipment and their physical security,
grants and contracts, and financial reporting are usually subject to review.

INVESTIGATIVE AUDITS are performed when appropriate. These audits focus on alleged
civil or criminal violations of State or Federal laws or violations of University
policies and procedures that may result in prosecution or disciplinary action. Internal
theft, white-collar crime, misuse of University assets, and conflicts of interest
are examples of reasons for investigative audits.

Please direct questions to Chibuike “UK” Azuoru( [email protected]), Office of Internal Audit, East Stadium, Room 205, SLU 10329, Hammond, LA 70402.
You may also contact us by phone at 985-549-2873, or send a fax to 985-549-3093. On-campus
mail delivery should be sent to box 10329.

The Office of Internal Audit is pleased to provide you with an informative video and
handbook entitled Internal Control Concepts and Applications. These materials are
available for your use as a means to educate the campus community on the importance
of internal controls. We believe you will find these materials to be valuable tools
in fulfilling your administrative responsibilities.

Southeastern’s Office of Internal Audit is a member of the Association of College
& University Auditors (ACUA). ACUA’s home page contains numerous references concerning
the subject of internal auditing.