Audit Services
In order to meet the responsibilities and objectives as set forth in the Audit Charter, it is necessary for the Internal Audit Department to perform reviews and audits of varying types and scopes depending on the circumstances and requests from management.
Each fiscal year an annual audit plan is developed and submitted to the CEO and Audit Committee for review and approval. The audit plan is based on a risk assessment methodology, as well as requests from management. Audit services can be requested by members of the university community through memos or email. The following types of audit services are provided by the Internal Audit Department.
Audit Liaison Officer
The Director of Internal Audit has been designated by the Chancellor to serve in the capacity of Audit Liaison Officer. The Audit Liaison Officer is responsible for overseeing that all findings and recommendations with regard to external audits and reviews are satisfactorily resolved, a requirement that is mandated by the UNC Office of the President. The Audit Liaison Officer will be the initial contact point and will attend all entrance and exit conferences.
Copies of all findings and recommendations issued to management by external auditors, consultants, and investigators along with University responses shall be forwarded to the Audit Liaison Officer in a timely manner. Upon implementation of the recommendations or other alternative action by management, the Audit Liaison Officer will perform verification procedures to ensure that the stated plan of action has been implemented and will issue a status report to the Chancellor and the Executive and Audit Committee of the ECU Board of Trustees.
Financial Audits
A financial audit is a review intended to serve as a basis for expressing an opinion regarding the fairness, consistency, and conformity to financial information with generally accepted accounting principles. Financial audits can be full or limited in scope, depending on the objectives.
A full scope financial audit consists of a review of the financial statements of an entity of sufficient extent to express an opinion on those statements. Such an audit is conducted in accordance with generally accepted auditing standards as adopted by the AICPA. The North Carolina Office of the State Auditor normally performs the University's financial audit. External accounting firms perform the Foundation audits.
Financial audits that are limited in scope are normally performed by the Internal Audit Department. These audits can include a transaction cycle review of administrative systems such as purchasing, payroll, and payables or a special examination of the financial activities of a decentralized university department.
Operational Audits
Operational audits are concerned with the effectiveness and efficiency of operational units within the University. Effectiveness measures how successfully an organization achieves its goals and objectives. Efficiency measures how well an entity uses its resources to achieve its goals.
Compliance Audits
A compliance audit measures the compliance of the client with some established University, Federal, or State laws, regulations, and/or policies.
Information Technology Audits
Information technology audits are conducted to evaluate the quality of the controls and safeguards over the information technology resources of the University. These audits normally consist of reviewing the effective use of information technology resources, adherence to management's policies, and to encourage the design and implementation of adequate controls over computer applications and the computing environments in which they are used.
Investigative Audits
These audits are normally requested by management and/or anonymous tips and focus on alleged, irregular conduct. Reasons for investigative audits include: internal theft, misuse of State property, and/or conflicts of interest.
Consultations/Advisory Services
The Office of the Internal Auditor also provides routine consultation and advisory services to University management. This may include but is not limited to interpreting policies and procedures, participation on standing committees, limited-life projects, ad-hoc meetings, and routine information exchange.
Year-end Work - State Auditors
The Office of the Internal Auditor provides assistance to the NC State Auditors by conducting and/or compiling the following:
- Self Assessment of Internal Controls
- Petty Cash Counts and Bank Certifications
- Listing of Audit Engagements
- Listing of ECU Related Corporations
- Inventory for University Printing & Graphics, Brody School of Medicine, and Student Health Services
- Fixed Assets Inventory
Other
Other special projects may be performed by the Office of the Internal Auditor as delegated by the UNC General Administration, ECU Board of Trustees, the University Chancellor, or other University management. It should also be noted that when feasible the Internal Audit Department takes an integrated audit approach in performing audit services, which involves combining financial, operational, compliance, and information technology audits. This approach is a cost saving measure that results in a broader coverage of assurance.
