What is the Audit Process?
Our new audit process begins with a desk audit in which our OCS auditors examine each department, categorizing providers into High, Moderate or Low Priority. (This has already been completed for the 2005-2006 calendar year.) High risk audits are in process and should be completed in 2005. For a more detailed review of the audit process, please see Desk Audit Process and Chart Audit Process links under Auditing on our website.
Audit Schedule- At the beginning of each fiscal year, the Internal Audit Department prepares an Annual Audit Schedule. The schedule is developed by evaluating: • Risk to the College. • Previous audit coverage. • Present circumstances. • Audits mandated by policy Opening Conference- An opening conference is held to discuss the nature of the audit, present the audit objectives, identify the areas to be tested, and determine if the auditee has any concerns. Planning an Audit- Internal audit coordinates with audit area management in the planning of the audit so that areas of special concern may be incorporated into the scope of the audit. Test Work – Most of the auditing test work takes place in the audit office; therefore, contact with the internal auditor may be minimal. An audit generally includes evaluations of internal controls, inquiries and tests to ensure compliance with established policies, procedures, laws, and regulations, and analysis to determine if operational efficiency can
When an activity is scheduled for audit, an announcement letter is sent to the responsible parties. The auditor will then schedule an entrance conference to discuss the objective and scope of the audit. At this initial meeting, responsible parties should take the opportunity to discuss any concerns or questions they may have about the audit and how they can facilitate the review process. A typical audit has several stages, including preliminary review, fieldwork, and reporting. The auditor flowcharts the system and evaluates the system and its controls, collects data and performs testing, documents the work performed and the conclusions reached, and issues an audit report.
When an activity is scheduled for audit, an announcement letter is sent to the responsible parties. The auditor will then schedule an entrance conference to discuss the objective and scope of the audit. At this initial meeting, responsible parties should take the opportunity to discuss any concerns or questions they may have about the audit and how they can facilitate the review process. A typical audit has several stages, including preliminary review, fieldwork, and reporting. The auditor flowcharts and evaluates the system and its controls, collects data and performs testing, documents the work performed and the conclusions reached, and issues an audit report.
The IRS investigates if your tax return was prepared correctly through a correspondence, face-to-face, or field audit. Each tax return submitted is perused through the Discriminate Function System or DIF that compares your deductions with the averages. You are going to be audited if your DIF score is higher than normal. Conducted by mail, a corresnpondence audit will have the IRS asking for additional information about some items on your tax return. Quickly comply and mail documents via certified mail if the IRS requests you to submit documentation to support your tax return, but don’t send originals. If you receive a notice from the IRS stating that you owe additional taxes because of a math error or because you did not declare income that was on your 1099 form, don’t pay the amount without first comparing your tax return with the information on the IRS notice. The IRS can miscalculate what you need to pay or enter data incorrectly, too. Appeal in writing within 60 days if you disagre
Related Questions
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