The Director of Internal Audit is responsible for preparing an audit plan each year. This plan is approved by the Board of Trustees Audit Committee no later than July. The steps in preparing the audit plan are as follows:
Review of Audits
The audit areas included in the previous five-year plan are reviewed each year by the Director to determine if there are any necessary additions or deletions. These may occur based on changes in the university organization or operations, discussions with administrators or external auditors, changes in the higher education environment, or other information available to the Internal Audit Department.
The relative risk of each audit area is assessed. Factors considered include: quality of controls/known or potential problem areas (includes the degree of reliance administrative or academic functions place on the activities of the audited unit or operation); the level of activity in an area that by virtue of its volume or complexity increases the opportunity for loss; date and results of last audit; external reporting requirements; public implications/visibility.
Audit Hours Available
The Director prepares an estimate of audit hours available per year for each auditor in the department, after taking into account time to be spent for holidays, vacation, sick and personal leave, training, committee meetings, administrative duties and involvement in professional organizations.
For each audit, the Director decides which auditors will work on that particular audit and estimates the budget hours necessary to perform the audit. These estimates are based on hours spent in that audit area on previous audits, actual hours spent on similar audits, and experience.