The Audit process is a collaborative process between the department and ARC. It is composed of four components Planning, Fieldwork, Reporting and Follow-up.
Generally, an audit begins with a planning meeting between a representative of ARC and the department head or financial officer. Management’s assistance and collaboration during planning is critical. Members of the audit team and departmental representatives will discuss the objectives of the audit, define the scope of the audit and discuss the key functions and risks of the department or operating unit. In addition, the team will provide management with information on planned audit procedures and often make a request for information needed to start the review. When scheduling audits, ARC Services will work with management to ensure that the review will have as little impact on day-to-day operations as possible.
During this phase of the review, the audit team will assess the control environment by reviewing key operations and functions through interviews and the review of policies. Copies of policies and other documentation maybe requested. ARC will also conduct tests to assess the effectiveness and efficiency of key processes and controls. Members of the audit team may revise the planned audit approach based on the outcome of the control assessment.
The audit team will communicate findings to the department throughout the course of the review. Upon the conclusion of the fieldwork the audit team will issue a draft report which restates outlines the objectives of the audit and lists the resulting conclusions drawn from the review. The audit team will provide and discuss the draft report with operating management. Management will then provide a written response to the recommendations in the audit report including action plans and steps that have been or will be taken to address the recommendations suggested to correct issues identified in the report. For actions that have not been taken, management should include a targeted date for when the revised procedures will be implemented. The action plan will be included in the Final Report issued to the appropriate Vice Chancellor and other members of Senior Leadership.
Approximately three months after issuing the report, ARC will follow up with management on the status of the corrective action plan and obtain evidence to validate the implemented corrective actions. ARC will continue to follow-up with management until each recommendation has been implemented and associated risk mitigated. ARC will report the status of corrective actions to the Audit Committee of the Board of trust during periodic meeting throughout the year.