Types of Audits
The Office of Internal Audit at Clayton State University uses a variety of audit techniques in its review of Institution operations, programs and resources. These audit techniques are commonly referred to as:
Operational Audits - Examine the use of unit resources to evaluate whether those resources are being used in the most effective and efficient manner to fulfill Institution's mission and objectives. An operational audit may include elements of the other audit types listed below.
Financial Audits - Focus on accounting and reporting of financial transactions, including commitments, authorizations, and receipt and disbursement of funds. The purpose of this type of audit is to verify that there are sufficient controls over cash and cash-like assets, and that there are adequate process controls over the acquisition and use of resources. Unlike external financial audits, internal financial audits do not prepare or express professional opinions on the fairness of the presentation of financial statements.
Compliance Audits - Review adherence to laws, regulations, policies, and procedures. Examples include federal and state law, BOR policies, and Institution president’s directives. Recommendations typically call for improvements in processes and controls intended to ensure compliance with regulations.
Information Systems (IS) Audits - Examine the internal control environment of automated information processing systems and how people use those systems. IS audits typically evaluate system input, output, and processing controls; backup and recovery plan; system security; and computer facility reviews. IS auditing projects can focus on existing systems, as well as systems in the development stage.
Internal Control Reviews - Focus on the components of Institution and auxiliary business activities. Areas such as payroll and benefits, cash handling, inventory and equipment and their physical security, grants and contracts, and financial reporting are usually subject to review.
Investigations - Seek to establish evidence of impropriety; imply a systematic track-down of information the auditor hopes to discover or needs to know. Investigations include alleged instances of fraud, waste and abuse, and improper activities.
Consulting Services - Add value and improves an organization's governance, risk management, and control processes without the auditor assuming management responsibilities. Consulting services may include counsel, advice, and facilitation.