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BACKGROUND SUMMARY
The University of Wisconsin-Whitewater is a public, State-supported
institution which participates in a variety of activities funded by external
agencies. As such, the institution's records are frequently subjected to
review by auditors. This paper is intended to outline policies and procedures
for the Internal and External Auditors in the performance of an examination
of these records.
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POLICY
It is the policy of the University to cooperate fully with External
Auditors in the performance of their duties. In exchange, the University
requests that External Auditors observe certain procedures to facilitate
orderly review. The procedures are detailed in the following paragraphs.
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GENERAL
External Auditors are assured full cooperation with the Internal Auditor
and employees of the area being audited. External Auditors are requested
to make an initial contact with the Internal Auditor, who will coordinate
all audit activities. The Internal Auditor will ensure that (1) the proper
persons are on hand to assist the External Auditors, (2) relevant records
are located and available, (3) interviews are scheduled so as to provide
minimum disruption of departmental activities, and (4) required facilities
and services are available.
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NOTIFICATION
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By External Auditor
It is anticipated that the audit agency will inform the Internal Auditor
of proposed audits. The initial notice given to the Internal Auditor should
indicate the scope and purpose of the audit. The Internal Auditor will
make the arrangements for an Entrance Conference with the appropriate University
officials. All subsequent contacts should be made with the Internal Auditor.
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By Departmental Personnel
If any University employee is contacted by an External Auditor without
prior notification from the Internal Auditor, the employee should notify
the Internal Auditor. The External Auditor should also be requested to
make an initial contact with the Internal Auditor.
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By the Internal Audtior
The Internal Auditor will notify the Dean of Graduate Studies and,
as applicable, the Chancellor and other Division Administrators, the appropriate
college Dean, department head, and principal investigator regarding all
known aspects of the upcoming review on extramurally sponsored research/scholarly
activities projects. For all other audits, the Internal Auditor will
notify appropriate University personnel as determined by the nature and
scope of the review. The Internal Auditor will personally accompany the
External Auditor and introduce him/her to appropriate University personnel.
The Internal Auditor will also advise the Director of UW-System Internal
Audit whenever audits are scheduled by agencies external to the UW-System.
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ENTRANCE CONFERENCE
The objectives of an Entrance Conference are to establish the purpose,
scope, and timing of the audit, the information required by External Auditors,
and the physical facilities needed. The Internal Auditor will work with
concerned parties to determine who should attend the conference.
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CONTACT DURING ON-CAMPUS AUDITS
After the audit commences and until conclusion, it is important for
the Internal Auditor to maintain contact with the Auditor-in-Charge. As
requested, the Internal Auditor will arrange additional interviews, secure
additional required documents, answer questions, and supplement interviewee
statements. The purpose of such contact is to expedite the audit and to
correct any erroneous information which may have been given inadvertently.
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AVAILABILITY OF UNIVERSITY RECORDS
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Extneral Auditors should request the records required from the Internal
Auditor. After appropriate arrangements have been made by the Internal
Auditor, the External Auditors should request the records required from
the appropriate Department/Office Administrator. External Auditors will
be required to document materials requested.
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University personnel will document External Auditor requests. University
personnel designated by the Department/Office Administrator in charge of
the records will inform External Auditors where to return the records.
All refiling will be done by University personnel.
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In cases where it is necessary to remove records from an office, the External
Auditors will secure the approval of the Department/Office Administrator.
The External Auditors will comply with the office procedures for identifying
records removed from the files, including listing and signing for records
removed.
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Any problems should be referred to the Internal Auditor.
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USE OF UNIVERSITY COMPUTER FACILITIES
There may be instances where the External Auditors require the use
of University computer resources to facilitate an audit. In such cases,
the Auditor-in-Charge should transmit his/her request through the Interanl
Auditor, describing the need for any programming, system analysis, and
computer time in the most specific terms possible. The request should be
made sufficiently in advance of need for the sources so that arrangements
can be made. It is anticipated that the demand for programming system analysis
and computer time will not be excessive. If, in the opinion of the University,
such demands are deemed to be excessive, the University reserves the right
to deny such requests.
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AVAILABILITY OF FINDINGS AND EXIT CONFERENCES
The purpose of the Exit Conference is to inform University representatives
of the audit findings, to clarify possible misunderstandings, and to identify
the issues that are unresolved.
In some circumstances the University may be asked to make preliminary
comments on findings concerning specific transactions. In such cases, External
Auditors are expected to provide sufficient information, including reference
to specific sponsor policy, identification of specific staff members when
used as source, and identification of record source used in findings. The
need for this information is to enable the University to adequately review
the questions and provide a meaningful response.
In situations where the University and the External Auditors agree that
an audit is of limited scope and a formal Exit Conference involving several
people is not practical or justified, the External Auditors should notify
the Internal Auditor when their field work is completed. In such instances,
the External Auditors are requested prior to their departure to review
the preliminary findings with the Internal Auditor.
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AUDIT REPORTS AND RESPONSES
A copy of the Audit Report should be sent by the External Auditors
to the Chancellor who, in turn, will forward it to the Internal Auditor.
The Internal Auditor will, in cooperation with the appropriate division
head and other affected personnel, secure comments and coordinate or prepare
the University response. A central file of all audit reports, responses,
and related correspondence will be maintained in the office of the Internal
Auditor. A copy of the report and response will be forwarded to the UW-System
Office of Operations Review and Audit.
