What exactly is a P&C audit?
P&C stands for Procedures & Controls Audit. A P&C audit is designed to be a relatively quick review of fiscal procedures and controls within a department. These audits help Internal Audit and the university assess the overall integrity of fiscal procedures within individual departments and provide an opportunity for service at the departmental level. The focus of these audits involves controls over the processing of revenues received, authorization and approval of expenditures, basic computer controls (both physical and logical access along with backups), and security and proper use of university assets.
How is a P&C audit different from other audits performed by Internal Audit?
A P&C audit is a quick review of fiscal procedures and control within a department. Therefore, a P&C audit normally requires less audit time for both Internal Audit staff as well as the department. Other audits usually include more in-depth reviews and evaluation of compliance with university and departmental policies; financial and operational procedures for adequate and effective internal controls and procedures, as well as effective and efficient operations; and procedures for safeguarding assets.
How long will it take?
P&C audits, from initial memo to report issuance, usually take between six and eight weeks for Internal Audit staff to complete.
What do I need to do to get ready for the audit?
Internal Audit requests a copy of the department's organizational chart at the initial meeting. A department can review the department profile, which is the main tool used by Internal Audit in performing a P&C audit. This form can be viewed at Internal Audit's website under forms - Department Profile. It is important that the department chair or director as well as anyone who is primarily responsible for fiscal procedures be involved in the audit.
How much time will be involved for the department being audited?
There are three meetings during the audit: initial, interim, and closing meeting. The initial and closing meetings last about an hour while the interim meeting takes about an hour and a half to two hours. The department profile, based on departments that have completed it, takes approximately four hours to complete. A small amount of time is devoted to pulling documentation for the audit and reviewing the draft of the audit report as well as preparing management action plans for any recommendations included in the audit report..
What happens if procedural weaknesses are noted?
Internal Audit will make recommendations for improvement. These recommendations will be included in a formal audit report. Internal Audit will follow up with the department on the status of the recommendations and management action plans approximately three to six months after the report is issued.
Who gets a copy of the audit report?
For academic division departments, the dean of the college receives a copy as well as the department chair or director. For administrative areas, reports will be sent to the manager or director of the department and to those up the reporting chain to the vice president of the division.
Does the President or Board of Trustees receive the reports?
The President and Board of Trustees do not receive individual department reports. They receive a summary of findings for grouped areas; e.g., academic centers, administrative departments within a division, and colleges. Since Internal Audit reports administratively to the President and functionally to the Board of Trustees Finance and Audit Committee, they do receive copies of most other internal audit reports.
Is there anybody I could contact to ask them about their experience in being audited?
Yes. If you contact us, we can provide you departments and names of individuals that have had a P&C audit.