Frequently Asked Questions

1. Who are the Auditors?

1. Internal auditors are Dixie employees reporting to the Board of Trustees via The Board Audit committee.
   
   The Internal Audit Department performs liaison functions for all external auditors working on campus.
2. External auditors include independent public accounting firms, the Defense Contract Audit Agency (DCAA), and others who carry out engagements including the annual financial statement audit, reviews of Dixie’s compliance with government rules and regulations, and audits of indirect costs associated with government sponsored research.

2. What Should I do if an External Auditor Appears?

Any External Auditors are to be first referred to the Internal Audit Department of Dixie State College prior to the start of any audit engagement by External Auditors.

You should inform the Internal audit Department so that we may act as an audit coordinator to schedule a meeting to discuss the purpose, scope, timing and coordination of the audit. A mutually agreeable date will be determined for the commencement of the audit. Representatives from an external audit agency will not contact other departments or individuals without prior approval from the Internal audit Department.

3. How are Internal Audits Scheduled?

The Internal Audit Department periodically performs assessments of College operating units and control functions to identify areas of potential institutional risk. Based on these assessments and discussions with management, the Internal Audit Department recommends an annual audit plan, which is approved by the Board of Trustee’s Audit Committee.

The Internal Audit Department also responds to special requests from College and department management, inquiries received from members of the College community and special requests for audits from external agencies.

4. What is an Audit?

The first thing that comes to mind when some people think of auditing is financial auditing. In reality, financial auditing is just one aspect of the auditing process. Audits at Dixie State College generally include an examination of the entire organizational unit, system or function and often include an evaluation of the following:

• Compliance with laws, rules and regulations.
• Compliance to applicable College policies.
• Adequacy of internal controls.
• Efficiency and effectiveness of operations.

Audits often focus on determining if procedures and internal controls are adequate. An adequate procedure helps ensure that the objectives of the system, function, or unit are achieved in an effective and efficient manner. An adequate control prevents an unwanted outcome from occurring.

Internal audits at Dixie State College generally fall within five categories.

• Regularly Scheduled Operational Audits
  • Provide an objective and professional evaluation of an area, department or functional operation.
  • Provide recommendations to improve the effectiveness and efficiency of operations.
• Reviews Requested by Management
  • Provide a limited review of an area performed at the request of a department head or senior management.
  • Provide insight into a specific operation and/or control.
• Change in Management Reviews (Transfer Audits)
  • Performed when there is a change in executive management position.
  • Determine if the prior manager followed proper checkout procedures such as returning building keys and purchasing cards.
  • Determine if expenditures shortly before the transfer were appropriate and if account balances are consistent with prior year balances.
• Information System Reviews
  • Evaluate the information technology infrastructure of a system.
  • Ensure the security access matrix is adequate and that appropriate access and security exist.
  • Evaluate the system controls, standards, policies and procedures.
• Purchasing Card Audits
  • Ensure transactions were appropriate and that proper procedures were maintained.
  • Performed annually on individual cardholders and departments.

5. What is the Audit Process?

Audit Schedule- At the beginning of each fiscal year, the Internal Audit Department prepares an Annual Audit Schedule. The schedule is developed by evaluating:

• Risk to the College.
• Previous audit coverage.
• Present circumstances.
• Audits mandated by policy

Opening Conference- An opening conference is held to discuss the nature of the audit, present the audit objectives, identify the areas to be tested, and determine if the auditee has any concerns.

Planning an Audit- Internal audit coordinates with audit area management in the planning of the audit so that areas of special concern may be incorporated into the scope of the audit.

Test Work - Most of the auditing test work takes place in the audit office; therefore, contact with the internal auditor may be minimal. An audit generally includes evaluations of internal controls, inquiries and tests to ensure compliance with established policies, procedures, laws, and regulations, and analysis to determine if operational efficiency can be improved.

Draft Report- The draft report will address issues identified during test work, and supply recommendations in response to the issues.

Closing Conference- A closing conference is be held to review the draft report. Any needed clarification of facts and/or wording will be given in this meeting. The department is asked to prepare responses to the audit findings.

Departmental Responses- Once departmental responses have been submitted, they are forwarded they are incorporated verbatim into the text of the audit report.

Audit Report- After appropriate discussion with the responsible parties, the report is issued and distributed to the auditee, DSC Audit committee and the Board of Trustees of the College.

Follow Up Audit- A follow-up review will be conducted to ensure issues identified in the audit report have been resolved.

6. What Does a Typical Internal Audit Include?

Common elements of an internal audit engagement include the following:

• Scheduling an opening conference to discuss audit objectives, timing, and intended report format and distribution
• Evaluating internal control systems
• Testing to ensure proper operation of internal control systems
• Developing conclusions based on test results
• Reviewing audit issues and draft audit reports with management and staff
• Preparing and distributing an audit report which generally include management's responses to the issues raised
• Following up to ensure all issues raised in audit reports have been addressed

7. How can I Best Work With Auditors?

Each audit engagement has a defined scope and objectives. Any auditor requesting information from you should be able to explain the audit's purpose and objectives so you can understand the reasons for questions being asked and provide accurate answers.

When you understand the audit's purpose, you can assist by either providing relevant information or, if you are not the best source of the requested information, directing the auditor to the right person or office.

If you have questions or concerns about information being requested, it is appropriate to discuss those concerns with the auditor, an Internal Audit manager, or the Director of Internal Audit and Institutional Compliance.

8. How can we Help Ensure Quality Client Service?

At the completion of each audit engagement, the Internal Audit Department will requests primary audit clients to complete and return a client service evaluation form to identify areas for improving our service. The Department also welcomes comments at any time regarding the quality, timeliness, and responsiveness of internal and external audit engagements.

9. How can I Contact the Internal Audit Department?

The Internal Audit Department can be contacted as follows:

Phone number: (435)652-7619
Fax number: (435)656-4000
E-mail: rbaker@dixie.edu

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