THE OFFICE OF INTERNAL AUDIT

Welcome to the website of the Office of Internal Audit. Internal auditing is an independent appraisal activity within an organization for the review of operations as a service to management. It is a managerial control which functions by measuring and evaluating the effectiveness of other controls.

What is Internal Auditing?

Internal auditors (IA) do not deserve the dubious distinction that they have received as being "those who enter the battlefield after the battle is over and bayonet the wounded." The internal auditor is being recognized more and more as a necessary component of any organization. Whether the function is classified as the inspector general or internal auditor, the purpose of the function is to serve management.

The Institute of Internal Auditors define internal auditing as:

"… an independent, objective, assurance and consulting activity designed to add value and improve an organization's operations.  It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve effectiveness of risk management, control, and governance processes."

So you see, we assist management in meeting the goals and objectives of the organization. This is accomplished through a series of review and audit processes designed to improve effectiveness and efficiency. Our purpose is to help you more effectively perform your job. The following items are a sampling of the things we do:

• Evaluate departmental operations for ways to improve effectiveness and efficiency
• Evaluate compliance with various University, State and Federal policies and regulations
• Test internal control structure to ensure that proper controls are in place to protect and safeguard the property and assets of the University
• Provide University officials with advice regarding systems, policies, procedures, etc.

The audit philosophy of Alabama State University will incorporate auditing tools supported by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). COSO as it is most commonly referred to, is supported by the Institute of Internal Auditors. This methodology utilizes Control Self-Assessment (CSA) throughout the University to strengthen controls.

Objective and Scope

The objective of internal auditing is to assist all members of management in the effective discharge of their responsibilities, by furnishing them with analyses, appraisals, recommendations and pertinent comments concerning the activities reviewed. The internal auditor is concerned with any phase of business activity where he or she can be of service to management. This involves going beyond the accounting and financial records to obtain a full understanding of the operations under review. The attainment of this overall objective involves such activities as:

• Reviewing and appraising the soundness, adequacy, and application of accounting, financial, and other operating controls, and promoting effective control at reasonable cost.
• Ascertaining the extent of compliance with established policies, plans, and procedures.
• Ascertaining the extent to which company assets are accounted for and safeguarded from losses of all kinds.
• Ascertaining the reliability of management data developed within the organization.
• Appraising the quality of performance in carrying out assigned responsibilities.

Responsibility and Authority

It is the policy of the Office of the President that the internal auditor shall have full access to all of the organization's records, properties, and personnel relevant to the subject under review. The internal auditor shall be free to review and appraise policies, plans, procedures, and records.

The internal auditor's responsibilities will be discharged in a manner that is consistent with the Code of Ethics of the Association of College and University Auditors. Internal audit activities will be coordinated with others so as to best achieve audit objectives and the objectives of the organization.

Mission Statement

In accordance with our charter, the objective of Internal Audit is to assist all levels of the University management in the effective discharge of their responsibilities. Internal Audit provides a management advisory service designed to help and consult with cost center managers, other administrators, as well as senior management and the Board of Trustees. In performing our audits, the President and Board of Trustees have authorized us to have access to all University records, properties and personnel relevant to the subject under review. We do not, however, have direct operating responsibility for or authorization over any of the activities reviewed. We are an independent appraisal activity that in no way usurps or relieves the University’s departmental personnel of their operating responsibilities.
Two primary concerns of the Office of Internal Audit are:

• The assessment of the effectiveness and integrity of the overall system of internal control
• The reduction of the University's exposure to loss

As a result some audits or parts of audit projects are mandated. But we also have the capacity and desire to assist you in departmental management in improving your control over the operations for which you are responsible through the non-mandated aspects of the internal audit plans.