Audit and Assurance Unit
Internal
Auditing
at
What is Internal Auditing?
Internal
audit is an independent assurance function established within an organisation
to add value and improve the organisation operations.
Internal
auditing can help an organisation accomplish its goals by systematically
evaluating and improving the effectiveness of risk management, internal
controls and governance processes.
A
common misconception is that accounting systems and financial transactions are
the only areas reviewed by internal audit. On the contrary, Internal Audit can
be utilised by management to review all organisational activities.
The
organisation can also benefit from Internal Audit through its involvement in
operational matters as they arise, meaning internal audit can be proactive
rather than reactive.
Why do we have Internal Audit at JCU?
An
effective Internal Audit function is widely viewed as essential component of a
strong corporate governance framework in any successful organisation.
In
addition, the University is subject to the requirements of the
As
such, Audit and Assurance Unit is able to assist the University to achieve its
goal and objectives, and to meet its accountability requirements.
How does Internal Audit work at JCU?
Audit
and Assurance Unit’s audit reviews are scheduled into an Annual Work Program
which is approved by the Audit and Compliance Committee of the University
Council. A copy of our current work program is located on our web site:
http://www.jcu.edu.au/office/intaudit/annualworkplan.html
Notification
of the proposed review is given in advance to appropriate management so that
relevant personnel can make any necessary preparations.
The
objectives and scope of the review are normally discussed prior to the commencement
of any work so that everyone clearly understands the work being undertaken.
Audit
work is then carried out by staff of the Audit and Assurance Unit in accordance
with a program of audit tests designed to minimise staff interruption yet
assess the effectiveness and efficiency of the area under review.
Comments
and responses on reportable audit findings will be sought from relevant staff
as and when the matters arise in the course of the audit.
A
draft report is then prepared and discussed with appropriate management prior
to its finalisation and issue. In respect of each audit finding there
will be a recommended action by Audit and Assurance together with an agreed
action by management.
At
the completion of each audit, an Audit and Assurance Report will be
issued. This report contains only significant audit findings as
determined by the Manager, Audit and Assurance Unit in accordance with a risk
assessment of the potential consequences of any deficiencies identified by the
audit.
Audit
and Assurance Reports are issued to the Vice-Chancellor and the Audit and
Compliance Committee.
A
Control and Efficiency Report may also be issued. This report is issued
only to appropriate management and lists those audit findings which are not
deemed to be significant, but which still require management attention.
All
audit findings are subject to regular follow-up by Audit and Assurance to
ensure the audit findings have been satisfactorily resolved. All
significant audit findings which have not been finalised are monitored by the
Audit and Compliance Committee.
A
flowchart outlining the audit process is located on our web site:
http://www.jcu.edu.au/office/intaudit/auditprocess.html.
Will an Audit pick up every error?
No!
To detect every error Audit and Assurance would have to check 100% of all
transactions and there is insufficient time and resources to do this. The
costs involved would outweigh any gains in improving audit findings and
recommendations.
Testing
of transactions by Audit and Assurance is performed on a sample of items
only. This sample is selected by Audit and Assurance using a structured
approach.
Who does Audit and Assurance report to?
The
Audit and Assurance Unit is directly responsible to the Vice-Chancellor and
reports quarterly to the Audit and Compliance Committee.
We
are independent of the Corporate and Commercial Division and all University
management.
Who audits Audit and Assurance?
The
effectiveness of the University’s audit and assurance function is assessed by
the external auditors as part of this process.
In
addition, Audit and Assurance is subject to external review every three years
through professional internal auditing standards issued by the
This
review covers compliance with the professional internal auditing standards and
quality assurance processes.
How can Audit and Assurance help you?
Audit
and Assurance is able to review systems throughout the University to provide
advice on how to ensure these systems function efficiently and effectively.
Audit
and Assurance can also assist by providing advice on areas about to undergo
significant change, to ensure that the necessary controls are built-in from the
start.
In
addition, Audit and Assurance can review transactions or events to provide
advice on whether a proper process has occurred.
If
there is anything you wish to have evaluated to gain comfort, or if you have
any uncertainty, please contact the Manager, Audit and Assurance Unit at any
time for advice.
How can you help Audit and Assurance?
Each
year around May, Audit and Assurance plans activities for the next audit year
(which runs from June to May). During this planning phase, advice is
sought from University staff on areas of risk within the University which could
be subject to audit.
All
responses are then assessed using a risk methodology, and very high and high
risk areas are included in the audit plan for the audit year. Some lower
risk areas can also be included, dependent upon availability of resources.
In
addition,l Audit and Assurance endeavours to ensure it provides a relevant,
value-added service to the University.
As
such, at the end of each audit we forward a Client Evaluation Survey to the
area to obtain valuable feedback to improve our provision of audit services.
Anybody
who has been subject to audit is invited to complete the survey. The
survey form is located on our web site:
http://www.jcu.edu.au/office/intaudit/Survey.html.
Services provided by Audit and Assurance
Currently,
Audit and Assurance provides the following services:
§
Grant Acquittal Statement Audits
§
Compliance Audits
§
Review of, and Provision of Advice on,
Systems, Policies and Procedures introduced or amended by University Management
§
Fraud Investigations
§
Referral point for matters involving the
Crime & Misconduct Commission; that is, staff misconduct issues
§
Efficiency Audits
§
Probity Audits
Confidentiality
All
information provided to or handled by the Audit and Assurance Unit is treated
with the utmost confidentiality.
Audit
and Assurance staff have authorised access to all records, information and
personnel as is considered reasonable and appropriate in the conduct of their
work.
Information
provided to the Audit and Assurance Unit can become a protected disclosure for
the purposes of protection under the Whistleblowers Protection Act 1994
(Qld).
Audit and Assurance Personnel
The Audit and Assurance Unit
comprises the following personnel:
Manager
x 5489
Audit and Assurance
Officer x 5401
Audit and Assurance Officer
x 5182
Our Offices
We are located on the second
floor of the Humanities II Building, Rooms 212 – 214.
Common Fax : 07 4781 4010
For more information, please
visit our web site:
http://www.jcu.edu.au/office/intaudit/
