Office of Internal Audits

Welcome to the Office of Internal Audits for Midwestern State University

Internal auditing is an independent and objective assurance and consulting activity that is guided by a philosophy of adding value to improve the institution’s operations.  We are committed to performing the highest quality auditing and consulting services.  Our office welcomes questions or requests for assistance from the campus community regarding the internal audit activity.  We encourage the campus community to read the information and resources about internal audit that we have provided on the rest of our webpage.

Mission

Our mission is to enhance and protect the University’s value by providing risk-based and objective assurance, advice and insight.

The mission will be achieved by:

  • Using a systematic, disciplined approach to evaluate risk management, internal controls, operational and governance processes.
  • Maintaining independence and objectivity at all times and adhering to professional standards.
  • Promoting integrity and compliance with all applicable laws, regulations, university policies and procedures.
  • Assisting the University achieve its goals and objectives, identify and address risks, and continuously improve processes and operations.
  • Maintaining a strong partnership with the Board of Regents, the President, University management, and oversight agencies to enhance our effectiveness.

Activities

The scope of internal auditing encompasses, but is not limited to, the examination and evaluation of the adequacy and effectiveness of the institution’s governance, risk management, and internal controls as well as the quality of performance in carrying out assigned responsibilities to achieve the university’s stated goals and objectives. 

The type of services performed include:

  • Assurance Services (Audits) – An audit is the objective assessment of evidence to provide an independent opinion or conclusion. The audit scope or focus is not limited to accuracy of data or compliance with policies, laws and regulations but can include assurance that resources are acquired economically, used efficiently, and adequately protected; that programs, plans and objectives are achieved; that quality and continuous improvement are fostered in controls and governance processes.
  • Consulting Services – Consulting is advisory in nature and services are generally performed at the request of management, intended to add value and improve effectiveness. Consulting objectives and scope are determined in advance by collaborating with management and may include counsel, advice, facilitation, and training.
  • Investigations and Special Reviews – Investigations are performed when complaints or tips are received or when evidence or indications of fraud exist. It may include reviews of policies and procedures to prevent the likelihood of potential fraud from occurring or recommend ways to prevent or detect occurrences in the future.

Core Principles

The Core Principles for the Professional Practice of internal Auditing are the foundation for the Institute of Internal Auditors International Professional Practices Framework (IPPF)® and support internal audit effectiveness. For an internal audit function to be considered effective, all of the following Principles should be present and operating effectively.

  • Demonstrates integrity.
  • Demonstrates competence and due professional care.
  • Is objective and free from undue influence (independent).
  • Aligns with the strategies, objectives, and risks of the organization.
  • Is appropriately positioned and adequately resourced.
  • Demonstrates quality and continuous improvement.
  • Communicates effectively.
  • Provides risk-based assurance.
  • Is insightful, proactive, and future-focused.
  • Promotes organizational improvement.

Copyright © by The Institute of Internal Auditors, Inc. All rights reserved.

What To Expect When You Are Audited

Successful audits are based on sound planning and an atmosphere of constructive involvement and communication between the audited department and the auditor.  The internal audit process typically consists of four phases: planning, fieldwork, reporting and follow-up.

Listed below are the activities occurring in each phase.

Planning

  • Audit scope and objectives are determined.
  • The auditor gathers relevant information about the department through interviews and research.
  • The department’s internal control structure is reviewed and documented.
  • An audit program is prepared which outlines the fieldwork necessary to achieve the audit objectives.

Fieldwork

  • Fieldwork concentrates on testing of transactions, records, or resources and performing other procedures as necessary.
  • Efforts will be made to minimize disruptions and to make the audit process as smooth as possible.
  • Duration of the audit will vary depending upon its scope. Access to personnel and records plus the timeliness of responses to audit requests will also affect the duration.
  • Any significant findings are discussed with the department’s management.

Reporting

  • At the conclusion of fieldwork, a list of all findings with recommendations to resolve them are presented to the department’s management.
  • If necessary, an exit meeting is scheduled to discuss the audit findings, the recommendations, and to provide an opportunity for management to resolve any questions or concerns.
  • For each audit finding, management is expected to provide written responses detailing a corrective action plan that resolves the issue, identify the person responsible for implementing the corrective action plan, and an expected implementation date.
  • A draft audit report is prepared taking into account management’s comments and responses.
  • The draft report is distributed to management, the appropriate vice president and/ or other level of management charged with oversight of the department.
  • A final audit report addressed to the University president is issued and distributed to the Board of Regents and required state agencies.

Follow-Up

  • Within an agreed upon length of time not to exceed one year, the auditor follows-up with the audited department to verify the resolution of the audit findings.
  • The follow-up procedures will vary based on the significance of the findings and may include an informal review or performance of additional procedures.
  • A follow-up report listing any unresolved findings is distributed to the department’s management, the University President and the Board of Directors.

What To Do If You Are Contacted By An External Agency For An Audit

The Office of Internal Audits offers ongoing assistance to University departments and programs when audited by external agencies. 

When you receive notification of an impending audit, please contact Leigh Kidwell at extension 4914 or leigh.kidwell@msutexas.edu. We will facilitate the audit by guiding you on the necessary preparation steps, contacting other University departments whose participation may be required, and by working with the assigned agency representative.

Content Updated February 2019