Internal Audit first meets with Heads of Budget Centres to find out the objectives of the budget centre, the associated risks, and what controls are in place. We are required to consider operational risks and controls so we may discuss areas such as Health and Safety arrangements as well as controls over financial processes. We may also need further meetings with other members of staff to obtain more detailed information on the controls that are used.
Tests are carried out to check that controls are adequate and are operating effectively. This may require sampling, observing work being performed, reviewing notes of meetings and holding discussions.
We will then meet again with the Head of the Budget Centre to discuss our findings and any recommendations we wish to make in the report.
After this meeting, a draft report is produced. The report includes an action plan that summarises the recommendations, the agreed actions and timescales.
The Head of Budget Centre will be asked to comment on the factual accuracy of the report before it is finalised. As all the findings will have been discussed before the report was produced, there should not be any surprises in what it says.
A more detailed description is provided in our step-by-step guide.