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Over
the past years the auditing profession has been trying to distance
itself from the perception of auditors as the group who "come
in after the war is over to bayonet the wounded". At the University
of Minnesota, our Office of Internal Audit similarly is making a special
effort to dispel the notion of an audit as something we do to you.
Rather, we are promoting the concept that an audit is something
we accomplish with you, the unit being reviewed. This is what we
call participatory auditing, and we are convinced the product of
this approach will be far superior to any audit completed without
your active involvement. Why are we so confident of this? The answer
is simple: nobody knows your operation like you do.
In what phases
of the audit are we not only welcoming, but requesting your active
involvement? All phases - starting before the entrance conference,
and continuing through planning, testing, and reporting. In fact
we would expect that your involvement would not end with the issuing
of the audit report, but would continue through the follow-up process
to ensure that recommendations are implemented and departmental
and institutional risks are reduced.
Following are
specific examples of how your active involvement will enhance the
audit process and the resulting product (i.e. recommendations to
reduce risks and improve your ability to fulfill your mission).
Prior
to entrance conference - supply requested information
regarding financial, operational, and information system documentation.
If you are aware of other information which would be helpful to
us as we review your operation, we ask that information also be
provided.
Entrance
conference - share any internal control concerns
you have regarding the unit being audited. This is an opportunity
to request audit review and assessment of issues troubling to
management.
Planning
- in addition to providing input throughout the planning process,
review the engagement letter and audit work plan, and where appropriate
suggest revisions. Ask questions if you don't understand why certain
activities have been included, or excluded. There are no secrets
to our audit scope or process.
Testing
- as test results are shared with management, we ask that
you review the preliminary results, and begin thinking about possible
corrective actions.
Reporting
- review the draft report and make suggestions for any changes
or enhancements before, or during, the exit conference. Keep in
mind this review is vital to insuring the accuracy of the report.
Developing
the management plan - Your involvement is particularly
critical to ensure the corrective action taken is the best solution
to the control issue addressed. We encourage units to offer alternative
solutions to the issues addressed, and to project realistic time
frames for completion of the management plan. In some cases units
may decide to accept certain risks if they feel no cost effective
solution is available.
Recommendation
follow-up - be proactive in monitoring and reporting
the status of corrective action. The primary benefits of the audit
are not realized until effective corrective action is taken.
As you can see,
the active involvement by the areas reviewed is vital to the Office of Internal Audit fulfilling our role as advocates for improving University
controls, accountability and oversight. Again, we are convinced
the potential benefits of the audit process can only be optimized
with your active participation and input. To this end, we look forward
to partnering with you throughout this process. Some years ago,
it was said that the two biggest lies ever told were when the auditor
stepped in the door and stated "we're here to help you"
and the auditee responded " we're happy to have you".
It is our goal that, when this is said in the future, it will no
longer be considered less than truthful.
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