|
|
Wake Forest University
Office of Internal Audit
Piedmont Plaza II, Suite 305
(336) 716-5764
Hotline 1-877-880-7888
MISSION The mission of the Office of Internal Audit Department is to assist University management and the Board of Trustees in identifying, avoiding and, where necessary, mitigating risks.
METHODOLOGY The Office of Internal Audit conducts independent and objective reviews of University operations and procedures. Findings and recommendations are reported as appropriate. In order to accomplish our objectives, we perform the following on a continual basis:
- Evaluate the adequacy of the internal control structure based on COSO criteria. (see below)
- Assess compliance with written policies, procedures, laws and regulations.
- Evaluate the reliability of accounting and reporting systems.
- Verify the existence of assets and ensure proper safeguards for their protection.
- Review the application of information technology for governance, control and assurance.
- In performing these activities, the auditor is authorized to have full, free, and unrestricted access to all property, personnel and records (including medical) relevant to the subject under review. This authority is granted by the Wake Forest Board of Trustees.
COSO DEFINITION OF INTERNAL CONTROL Internal control is a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives.
The three primary objectives of an internal control system are to ensure (1) efficient and effective operations, (2) accurate financial reporting, and (3) compliance with laws and regulations. The report also outlines five essential components of an effective internal control system.
- The Control Environment, which establishes the foundation for the internal control system by providing fundamental discipline and structure.
- Risk Assessment, which involves the identification and analysis by management - not the internal auditor - of relevant risks to achieving predetermined objectives.
- Control Activities, or the policies, procedures, and practices that ensure management objectives are achieved and risk mitigation strategies are carried out.
- Information and Communication, which support all other control components by communicating control responsibilities to employees and by providing information in a form and time frame that allows people to carry out their duties.
- Monitoring, which covers the external oversight of internal controls by management or other parties outside the process; or the application of independent methodologies, like customized procedures or standards checklists, by employees within a process.
The Office of Internal Audit had developed an audit plan utilizing risk analysis to identify the major areas needing audit attention. Each year the audit department evaluates the top risk areas and determines which should be included in the annual plan. The plan is approved by the President and the Board of Trustees.
|
 |