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1) |
What is Internal Audit? |
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2) |
What are the
objectives of an internal
audit? |
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3) |
How does Internal Audit do
this? |
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4) |
Do professional standards
apply to Internal Audit? |
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5) |
What will Internal
Audit do for your department? |
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6) |
What activities are
auditable? |
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7) |
Why would I want to request
an audit? |
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8) |
Can I ask Internal
Audit for assistance? |
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9) |
How does
Internal Audit decide when to perform an audit? |
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10) |
What
happens during an internal audit? |
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11) |
What are internal
controls? |
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12) |
What is managements
responsibility regarding internal controls? |
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13) |
Why is segregation of duties
important? |
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14) |
What are the Audit
Committee's responsibilities? |
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15) |
What is the difference
between an internal audit and the annual external audit? |
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16) |
What is Audit
Committee's role with respect to its Internal Audit
Department and the external financial audit? |
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17) |
Does Internal Audit have any
role producing the County's financial statements? |
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18) |
What are the roles of external
audit and internal audit regarding compliance with laws and
regulations? |
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19) |
What information should the
County's governmental units provide to internal audit
regarding any new systems development? |
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20) |
What safeguards does
internal audit provide regarding fraud and how does external
audit utilize them?
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1) |
What is Internal Audit?
Internal Audit is a service to the management and
constituents of Summit County as an independent, objective,
assurance and consulting activity designed to add value and
improve an organization's operations. Internal Audit can
provide management with important and useful information. It
can help determine whether there are appropriate internal
controls over administrative processes and/or systems and
recommend ways to improve the efficiency and effectiveness
of these processes as well as other areas. It helps an
organization accomplish its objectives by bringing a
systematic, disciplined approach to evaluate and improve the
effectiveness of risk management, control, and governance
processes.
The Summit County Internal Audit Department (IAD) consists
of auditors and staff who are County employees, who all
report to the Summit County Audit Committee as mandated by
Article X of the Summit County Charter.
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2) |
What are the
objectives of an internal
audit?
The objectives of an internal audit are to:
>Identify
the areas of risk in the area being audited;
>Identify
the controls in place to address those risks and review
their adequacy;
>Check whether the County’s financial regulations are being
followed;
>Perform detailed testing of the controls being relied on;
and
make recommendations where weaknesses or inefficiencies are
observed.
>Determining the reliability and integrity of operating and
financial information.
>Determining
the degree of compliance with policies, procedures, law, and
regulations.
>Assuring assets are properly safeguarded.
>Determining if operations are accomplishing objectives and
goals.
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3) |
How does Internal
Audit do this?
Through independent and objective reviews of a department's
operations and procedures, Internal Audit will assist you in
the effective management of responsibilities by providing
analysis, recommendations, and pertinent comments concerning
the review activities. This involves:
>Evaluating the soundness and adequacy of the internal
control structure.
>A review of policies, procedures, laws, and regulations to
assess the County's compliance.
>Reviewing the reliability, adequacy, and application of
accounting, financial and other operating controls, and
promoting effective control at reasonable cost.
>Evaluating the reliability of internal data by reviewing
controls and security features over data processing.
>Verifying the existence of assets and ensuring that they
are properly accounted for and safeguarded from loss.
>Evaluating the economy and efficiency with which resources
are used, and recommending improvements in operations.
>Reviewing security of resources and infrastructure.
>Conducting special examinations and reviews as requested by
management.
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4) |
Do professional
standards apply to Internal Audit?
Yes, the Institute of Internal
Auditors develop and publish professional standards, codes
of conduct, and statements of responsibilities for internal
auditors. Summit County’s internal auditors must complete a
specified amount of annual continuing professional education
hours to remain apprised of any updates of these standards
as well as compliance issues of County governmental units.
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5) |
What will Internal
Audit do for your department?
>Evaluate your operations and recommend ways to improve
your effectiveness and efficiency.
>Help you comply with various County, State and Federal
policies.
>Ensure that you have proper controls in place to protect
employees and the County.
>Provide advice regarding systems, policies, procedures,
etc.
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6) |
What activities are
auditable?
Auditable activities consist of subjects, units, or
systems which are capable of being defined and evaluated.
These activities may include:
>Overall operations of Offices, Courts, Agencies and their
corresponding departments.
>General ledger accounts.
>Information systems.
>Grants, contracts, and programs.
>Countywide systems such as fleet management, payroll,
purchasing, fixed assets, capital projects.
>Functions such as electronic data processing, purchasing,
marketing, production, finance, accounting, and human
resources.
>Transaction systems for activities such as sales,
collection, purchasing, disbursement, inventory and cost
accounting, production, payroll, and capital assets.
>Laws and regulations.
>Policies, procedures, and practices.
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7) |
Why would I want to request
an audit?
An audit is very beneficial to assess operations within
any area of the County. If you have recently assumed new or
additional supervisory responsibilities, an audit can review
the procedures to assess whether internal controls in your
area are adequate. A periodic "checkup” to review your
department's activities can help ensure that procedures
comply with County policies. It is also beneficial to assess
system controls and procedures when
new computer systems are installed.
Anyone within the County can request an audit, especially if
you suspect fraudulent or questionable activity is occurring
in your area. All requests will be evaluated, and Summit
County Internal Audit Department will determine whether an
investigation or review is warranted. To request an audit,
please contact Internal Audit at 330-643-2504 or by email at
tfretz@summitoh.net
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8) |
Can I ask Internal
Audit for assistance?
Yes. Whenever resources permit, Internal Audit is happy
to advise on the County’s rules and procedures, compliance
matters, or assist in implementing new systems. Audits and
special projects require the approval of the Audit
Committee. Internal Audit aims to work in partnership to
assist in improving procedures for the benefit of the
County. If you need to contact someone in Internal Audit
click here to be taken to our
staff contacts page.
Alternatively, please use our
feedback facility.
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9) |
How does
Internal Audit decide when to perform an
audit?
Internal Audit has a five-year plan that covers County
operations. The audits are determined by the Countywide Risk
Assessment model and the level of risk that they represent.
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10) |
What happens during an
internal audit?
Internal Audit initially meets with management to find
out what systems are used and what controls are in place. We
are required to consider operational risks and controls so
we may discuss areas such as safety and information systems
as well as controls over financial processes. We may also
need further interviews with other members of staff to
obtain more detailed information on the controls that are
used.
Tests are carried out to check that controls are adequate
and are operating effectively. This may require sampling,
observing work being performed, reviewing notes of meetings
and holding discussions.
We will then meet again with the designated management lead
assigned to oversee the audit to discuss our findings and
any recommendations we wish to make in the report.
After this meeting, a draft report is produced. The report
includes an action plan that summarizes the recommendations,
the agreed actions and timeframes for implementation.
Management will be asked to comment on the factual accuracy
of the report before it is finalized. As all the findings
will have been discussed before the report was produced,
there should not be any surprises in what it says.
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