Audit Process

Audit Process
The audit process consists of the following 4 phases:
 Planning
 Fieldwork
 Reporting
 Follow-up
Planning
During the planning phase, contact with audit clients is initiated and relevant
background information is gathered to gain an understanding of the audited area’s size,
responsibilities, and procedures in place. Also in this phase, audit objectives are
defined and audit methodology is determined through the creation of an audit program,
which is the blueprint for conducting the audit and accomplishing the audit objectives.
In most cases, a risk assessment of the department and/or function will be performed to
help ensure appropriate areas are included.
 Notification Letter – With few exceptions, audit clients are notified in

writing when their area is selected for an audit; however, due to the
nature of some audit work, little or no advance notice may be given.
This letter is sent to the executive officer of the area being audited as
well as the appropriate individuals, such as the Dean, Chairperson, or
Director. Occasionally, a preliminary questionnaire and/or a list of
documents that will help the audit team gain an understanding of the
unit or function will be provided at this time.
 Entrance Meeting – Depending on the type of audit and the amount of
audit work planned, an entrance meeting may be scheduled with the
head of the unit and any administrative staff that may be involved in the
audit. In-person meetings are preferred, but this may be accomplished
via telephone or other ways if necessary.
At the Entrance Meeting, the following will take place:
 The objective(s) and scope of the audit will be discussed

 Audit methodology and the reporting process will be explained
 Estimated timing and resource requirements are identified – any
potential issues (vacations, deadlines, etc.) that could impact the
audit should be brought up at this time
 Any questions about the audit or process will be answered
Input regarding risks and concerns that should be included in the audit is
encouraged and is an important part of this meeting and the planning
phase.
Fieldwork
The evaluation phase of the audit is referred to as fieldwork. This phase
includes assessing the adequacy of internal controls and compliance,
testing of transactions, records, and resources, and performing other
procedures necessary to accomplish the objectives of the audit.
It may be necessary for the audit team to conduct interviews with

departmental personnel and to review departmental records and practices;
however, efforts will be made to minimize disruptions and cooperate with
audit clients to make the audit process as smooth as possible.
The duration of an audit varies depending upon its scope; limited scope
audits may take only a week or two while broad scope audits may take
several months. In addition, access to personnel and records and the
timeliness of responses to audit requests may also affect the duration of
the audit.
Throughout the audit, audit clients will be informed of the audit process
through regular status meetings and/or communications. The audit team
makes every effort to discuss audit observations, potential issues, and
proposed recommendations as they are identified. In some instances, it is
necessary to work directly with audit clients to determine or validate the
root cause and discuss ways to eliminate the root cause.
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Reporting
The final result of every audit is a written report that details the audit scope
and objectives, results, recommendations for improvement, and the audit
client’s responses and corrective action plans.
Draft Report – Audit reports are typically prepared in draft form and
distribution is initially limited to the immediate manager of the area so it can
be reviewed prior to further distribution of the audit report.
If recommendations are made, written responses detailing the following are

requested of the audit client:
 A corrective action plan to resolve the problem and its root cause,
 The person responsible for implementing the corrective action, and
 An expected implementation date.
These responses will be included when the final audit report is distributed
to the appropriate level of University administration. Priority level issues
and recommendations are reported to and tracked by UT System until
implemented.
Exit Meeting – If necessary, an exit meeting will be held to provide an

opportunity to resolve any questions or concerns the audit client may have
about the audit results and to resolve any other issues before the final audit
report is released. Those attending usually include the audit team,
management of the audited entity such as the Dean, Chairperson, and
Director, as well as others that the audit client wishes to invite.
After the exit meeting and once the audit client has provided responses and
comments, the draft report is distributed to the Vice President, Dean, and
other levels of executive management responsible for the department or
function for review and comment before the final report is issued.
Final Audit Report – The final audit report is addressed to the University
President and copies are provided to appropriate levels of University
management, the Board of Regents, the UT System Audit Office, and
required state agencies.
Follow-up
There will be occasions when corrective actions to resolve an audit issue
will not be accomplished until after the audit report has been finalized. In
these cases, follow-up will be performed on the previously reported
recommendations to determine whether corrective action plans have been
effectively implemented and that expected results are being achieved.
Depending on the severity of the audit issue, follow-up activities could
include interviewing staff, reviewing updated procedures or documentation,
or re-auditing the processes that originally led to the audit issue.
A summary of the status of all open findings is presented at each quarterly

Institutional Audit Committee (IAC) meeting. If actions plans are not
completed by the expected date of implementation, a letter must be sent by
the responsible individual to the IAC explaining why the date was not met
and when the action will in fact be completed. If the date is missed a
second time, the responsible individual must provide an explanation to the
IAC in person.

Audit Process

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Audit Process

The audit process consists of the following 4 phases:

 Notification Letter – With few exceptions, audit clients are notified in

At the Entrance Meeting, the following will take place:

 The objective(s) and scope of the audit will be discussed

It may be necessary for the audit team to conduct interviews with

If recommendations are made, written responses detailing the following are

Exit Meeting – If necessary, an exit meeting will be held to provide an

A summary of the status of all open findings is presented at each quarterly

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