Q. What is Internal Auditing?
A. The internal audit function contributes to the effectiveness of controls that management is responsible for establishing and maintaining. We provide the Secretary with an independent, objective assurance and consulting activity which is designed to add value and improve the Cabinet’s operations.
Q. How do you select areas for review?
A. Most areas are selected on an annual evaluation or risk assessment performed by the Internal Auditors. However, some audits are based on specific requests by Cabinet Administration, management, and/or special circumstances.
Q. Why might I, or someone else, request an audit?
A. There are many benefits to performing an audit. If someone in your office has recently assumed new responsibilities, an audit can review the current procedures and assess whether the internal controls in your department are adequate. It can also be very beneficial when new computer systems have been installed. An audit is a good way to ensure that your policies and procedures are effective and efficient. In addition, having an outsider review your organization offers an independent opinion free of internal influences.
Q. What are (Internal) controls?
A. A control is any policy, procedure, practice, or mechanism designed to provide reasonable assurance that the organization's objectives will be achieved. This includes controls designed to safeguard assets, ensure the timeliness, accuracy and reliability of financial and management reporting and to promote operational efficiency, effectiveness and compliance with all applicable laws, regulations, policies and procedures. It is the responsibility of management to ensure that appropriate controls are implemented and functioning to support achievement of unit objectives.
Q. How will audit findings be reported?
A. You and your staff will be kept informed of the auditor's findings throughout the course of the audit. At the conclusion of the audit, you will be able to review a draft of the report before the final version is issued. A copy of your department's response to the audit findings is included in the final audit report.
Q. Who audits the auditor?
A. Once every three years a Peer Review is conducted by an external party to assess the quality review of Internal Audit. A report is issued to the Secretary with findings and recommendations.
Q. What does scope mean?
A. The scope of an audit refers to what organization functions will be included for review as part of the audit. Internal Audit wants to maximize its resources by concentrating on specific significant areas within an organization. The audit scope is determined through review of the organization's functions, discussion with the organization's management and auditor judgment.
Q. What is an audit finding?
A. If a significant issue is identified during the audit of a department the result is a finding. Findings have certain elements, including criteria or basis for determining that a problem does exist, a condition or situation that was observed, the effect or impact of the condition, and the cause of the problem to the extent that it can be determined. Findings should result in recommendations that resolve the issue and are helpful to management.