Auditing Process at Mines

This is a collaborative process between management and Internal Audit. Your involvement is essential for the success of the audit. Two-way communication will help the audit go smoothly. We will work together to agree to any findings during the audit – there should not be any surprises by the reporting phase. While we recognize the audit will involve some of your time, one of our objectives is to avoid disruptions as much as possible.

The Office of Internal Audit & Consulting Services is granted full and complete access to any of the School’s records, physical properties, personnel and material relevant to an audit or review.  This authority is granted by our Internal Audit CharterPDF versionText only version as approved by the Board of Trustees. Audits generally follow the below process:

Flow chart for the Internal Audit process

Jump to: NotificationInformation Gathering SessionsKick-off MeetingFieldworkExit ConferenceFinal Audit ReportCustomer SurveyReport to Finance & Audit Committee, Follow-Up Audit, Governance 

 

Notification

The Director of Internal Audit will inform you of the audit through a formal communication.

Information Gathering Sessions

The goal of this step is to gain an understanding of the processes in place. Key personnel are interviewed and departmental policies and other information are reviewed to determine your system of internal controls. Any promotional materials or internal documents that can lend to the understanding should be provided during this meeting. It is important for you to take this opportunity to identify concerns or issues you would like to be considered. Additionally, completion of the Audit Questionnaire in advance of the meeting can help make the meetings more productive. The Audit Questionnaire can be accessed at the Resources and Tools page.

Kick-off Meeting

The next step is the initial conference where we meet with the organization's manager and any staff members he or she wishes to include. During this meeting, we will discuss the scope and the logistics of conducting the audit. The scope of the audit is agreed to at this time and is set to address the risk areas within the process.

Fieldwork

During fieldwork we test to verify the controls identified in our preliminary work are operating as expected and that risks are sufficiently mitigated. We generally do this by sampling transactions and tracing them through the operating processes. Audit tests can be conducted in various formats to address the risks and controls in place.

Audit results that differ from expectation are discussed with you before a conclusion is drawn. Perhaps there is additional information that needs to be considered. Once exceptions are agreed upon, they become a finding, which is drafted and provided to you for review. Positive outcomes are also included within the final audit report.

Exit Conference

At the conclusion of the audit, we prepare a draft of the audit report which you review before the final report is issued. This report is discussed with your management team during the conference to make certain the recommendations are practical and there are no misunderstood facts. We will also discuss the action you plan to take as a result of our recommendations.

Final Audit Report

We will incorporate your responses to each of our recommendations in our final report. We request you state whether you agree with each of the recommendations and include a timeline for corrective action in your response.  Each audit finding receives a risk rating of high, medium, or low. This rating is primarily based on the circumstances of the finding as it relates to the specific area of audit as well as the controls in place, and its significance in relation to the institution as a whole. 

Final reports are distributed to the executive responsible for corrective action, as well as their superiors. They are also distributed to the President, Executive Vice President for Finance and Administration, Office of Compliance and Policy, and the Controller’s Office. As the Director reports to the Finance and Audit Committee, summary audit results are shared during the regular meetings. 

Customer Survey

Once the audit is complete, we will send you a customer service survey which ask you to help us improve our audit process. Please take the time to complete the survey and return it to our office.

Report to Finance & Audit Committee

As the Office of Internal Audit & Consulting Services reports functionally to the Finance and Audit Committee, a summary of the audit results are presented at those meetings.

Follow-Up Audit

Reported internal audit findings will be reviewed with the auditee (department head, unit manager) at six-month intervals until all findings are resolved. Resolution means satisfactory corrective action is taken. Where resolution of findings is untimely, or will result in significant exposure from control weaknesses or lost opportunity to improve productivity, resolution will be pursued at appropriate higher administrative levels.

Governance

As the Office of Internal Audit & Consulting Services reports functionally to the Finance and Audit Committee, a summary of the audit results are presented at those meetings.

Directory

Office of Internal Audit & Consulting services
1500 Illinois Street   Guggenheim Hall, Suite 212A
Golden, CO 80401

Shannon E. Sinclair
Director of Internal Audit
(303) 384-2504
ssinclair@mines.edu

Lisa B. Martinez Conover
Internal Auditor
(303) 273-3912
lconover@mines.edu