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Pima County Community College District Standard Practice Guide

SPG Title: Internal Audits
SPG Number: SPG-2402/AA
Effective Date: 9/14/95
Approval Date: 9/14/95
Review Date(s): 7/2/03, 3/15/07
Revision Date(s): 7/2/03, 3/15/07
Schedule for Review & Update:  Annually
Unit Responsible for Review & Update:   
Sponsoring Unit/Department: Director of Internal Audit
Regulation Title & No.: Internal Audits, RG-2402/A
Board Policy Title & No.: Financial Management, BP-2402
Legal Reference: 
Cross Reference:


PURPOSE

This Standard Practice Guide creates a standard operating procedure for Pima Community College internal audits.

DEFINITIONS

Recommendations
Audit recommendations are standards of control. Other options developed by departments to maintain the same or better standards of control are encouraged.

Audit
Audit is synonymous with review, appraisal, examination, and evaluation.

PROCESS AND PROCEDURES

Audit Selection
Audits shall be performed by the Office of the Director of Internal Audit, on the basis of risk analysis, administrator requests, and external requests or compliance.

Notification
The Director of Internal Audit will send a memorandum to the appropriate administrators, supervisors, and employees announcing the audit commencement date, audit scope, and preliminary documents required. Any notification exceptions shall be approved by the Chancellor.

Initial Interview
Individuals identified by the administrator and the Director of Internal Audit will have an initial meeting to discuss any questions in the notification letter. Such items as location of procedural information and documents, on-site arrangements for interviews and document review, changes since the last review, particular operational concerns of the administrator, and desired frequency of finding updates during the audit's process can be discussed at this time.

Finding Updates
Updates will be scheduled on a periodic basis as agreed upon by the Director of Internal Audit and the administrator.  Feedback will also be provided informally to affected employees throughout the audit.  Unanticipated findings that have significant impact will be communicated to appropriate administrators immediately.

Audit Procedures
Appropriate employees will be interviewed and procedural manuals reviewed to understand the operation.  Documents will be tested for compliance with both internal and external procedures and policy requirements. Where possible, audits will be conducted with a minimum of disruption to ongoing departmental operations.

Audit Reports
Draft reports will be used as a discussion instrument before distribution of the final report. The Director of Internal Audit will discuss recommendations and remedies with the appropriate administrator in an exit interview. The final report will be distributed to the Chancellor. A report copy is also provided to the Arizona State Auditor General as part of their external review.

Administrator Responses
Audits performed under the procedural steps described above will require the appropriate administrator to provide a written response addressing remedies taken to cure findings. Such remedies will note date completed, in process status, or expected completion date.

Follow-up Reviews
Reviews will be performed on a selected basis to verify remedies have been instituted.

OUTCOMES

All audit practices will be conducted in a consistent manner with reliable outcomes for administrators and operational units to respond to and correct, where necessary.