Salt Lake City Corporation · Office of Internal Audit
Policy and Procedures Manual
Internal Audit Process
These steps are general guidelines. Deviation from the guidelines would depend on the individual audits and circumstances. The following steps should be followed once an auditor receives an assignment and the auditee is notified. The timeframe for completing an audit depends on the scope and complexity of the assignment. Audit Reports are usually distributed quarterly.
Audit
Committee
Audit
Staff
Auditee
1. Review
and approve
annual
1. Conduct risk assessments of critical
City 1. Transmit
Internal Audit service request to the
audit
plan and department
operations. Compile each department
request. Audit Manager.
requests. Provide expertise
Prepare Annual Audit Schedule. Submit the
and
insight on audit
issues.
audit schedule and department requests to the
the Audit
Committee.
2. Based on the approved Audit Schedule, 2.
Provide Auditor with any requested
information
telephone department manager or designated
within an agreed upon time
frame.
audit contacts and inform them that Internal
Audit
is planning a review. Agree on a feasible start
date.
Also, at this time documents such as
operating
procedures, strategic plans, etc., could be
requested
to expedite the preliminary audit survey
step.
3. Conduct the preliminary audit
survey to gain
an
3. Same as 2
above.
overall understanding of the operation or
functions.
4. Prepare formal audit opening letter
and
distribute
4. Confirm
meeting.
to department director, manager and all
other
relevant
parties.
5. Schedule Opening Meeting and send
out a 5. Department Directors and
Managers
attend
confirmation notice.
opening meeting to understand the
audit
approach and acknowledge responsibilities
for
meeting timeframe and providing requested
data.
6. Perform audit fieldwork. Have
ongoing verbal 6. The line manager is responsible
to keep
the
and written communications with line manager
department directors informed on the
audit's
to present findings that need immediate attention
progress. Department management
could
and update on the progress of the audit.
request to meet with the auditor or audit
manager
at anytime, as needed.
7. Report orally and in
writing, using the
Internal 7. Line
management confirms
auditor’s
Audit Discussion Point Sheet (DPS), all
documentation or provides an alternate response
preliminary audit findings are listed on the
DPS to each DPS within 10
days. A reasonable
and given to the line supervisor, department
extension maybe granted for bona fide
reasons
director or designated audit liaison.
only. Extensions should be requested
within the original 10-day
period.
Note: Respone to a DPS needs to be direct
and
concise addressing: agreement or
disagreement
with finding, action planned and target
data
for completion.
8. Evaluate management’s responses to
the
DPS.
8. Provide clarification or additional information
as
Obtain proper clarification for any unclear issues
requested by the auditor within the
agreed
in the
response.
timeframe.
9. Compile audit workpapers to
approved
9. Same as 8
above.
audit standards, incorporating management’s
responses. Prepare Draft Audit Report and
submit it along with completed audit
workpapers
to the Audit Manager for review and
approval.
10. Distribute Draft Audit Report to
department 10. Receive Draft Audit Report
and
prepare
director and all applicable managers.
department response for
discussion
at scheduled exit conference and
inclusion
in the report.
11. Contact Department director and managers
via 11. Participate in exit conference to clarify any
factual
e-mail and schedule an exit meeting.
discrepancies and management’s response to
audit
findings and recommendations.
2. Discuss
Draft Audit
Report
12. Send Draft Audit Report to Audit Committee 12. Provide
any data requested by auditor.
with audit staff.
Determine
and provide additional information, as
requested.
if
management responses are
properly
addressing the findings
and
recommendations
3.
Determine if
department
13. Extend an invitation to department to attend the 13. RSVP on the
attendance to the Audit Committee
management
should attend
next
next scheduled Audit Committee Meeting
if Meeting, if
applicable.
Committee
meeting
applicable.
14. Prepare Final Audit Report as approved by
the 14. Provide any additional information,
if
requested
Audit
Committee.
by auditor.
15. Audit Manager approves and issues the
Final
15. Receive the Final Audit Report
electronically.
Audit Report electronically no later
than
5
days after the Audit Committee Meeting date.
16. Update workpapers, file final report
with the 16. Implement audit recommendations within
target
Recorder's Office. Place a signed hardcopy
in
dates in
report.
the audit
file.
4. Monitor
implementation
of
17. Provide the Audit Committee with
periodic 17. Provide auditor with any
requested information.
audit
recommendations;
updates on any outstanding
audit
determine final
resolution
recommendations.
including enforcing
compliance.
5. Review
the follow up
report
18. Perform audit follow-up in six months or as 18.
Provide auditor with information needed to
with department
management
directed by Audit Committee.
Distribute
perform audit follow up. Receive electronic
copy
if
needed.
follow up audit report electronically to
Audit
of follow up
report.
Committee and department management.
Close Audit file.
Prepared By: Nadira Brandenburg January 1997
Updated By: Nadira Brandenburg September 2000