Department of Internal Auditing
The Value of internal Audit at
Georgia Tech
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Department of Internal Auditing HOTLINE: 866.294.5565
Department of Internal Auditing
The value of Being an Internal Auditor
Broad view of the entire institution
Diverse work
Exposure to all parts of organization
Exposure to new technologies and practices and
emerging issues
Because we have an opportunity to help the
organization and to make a difference
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Department of Internal Auditing HOTLINE: 866.294.5565 4/13/2015
Department of Internal Auditing
A Layman's Statement about Internal Audit
“As an internal auditor, I do for the officers and
management of the university what they would
do themselves, if they had the time. I act as
senior management’s ‘eyes’ and ‘ears’ making
sure that the Institute’s assets are protected
and that we are being good stewards of the
resources that have been
entrusted to the Institute.”
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Department of Internal Auditing HOTLINE: 866.294.5565 4/13/2015
Department of Internal Auditing
Internal Auditing at Georgia Tech
Our mission defined….
1.
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Conduct reviews and evaluations of management practices and procedures at the
Georgia Institute of Technology. Reviews include but are not limited to:
–
The evaluation of internal control systems to determine their adequacy for the protection of
institutional assets, the production of accurate reliable information, and to the assurance
that institutional policies and procedures, state and federal laws, and contracts will policies
are followed.
–
Make determinations as to whether the Institute resources( personnel, property, funds, etc.)
are being utilized in an active, ethical and efficient manner, including the underlying causes
of any inefficiencies are wasteful practices.
–
Make determinations as to whether desired results were benefits are being achieved from
approved programs.
–
Formulate recommendations to management for improvement in, or correction of, practices
and procedures.
Department of Internal Auditing HOTLINE: 866.294.5565 4/13/2015
Department of Internal Auditing
Internal Auditing at Georgia Tech
Continued…
2. Conduct special studies of procedural or problem areas as
requested by appropriate levels of management.
3. Review information systems to ensure that they are adequately
defined, properly justified, documented, and include the necessary
internal controls.
4. Issue reports on the results of completed reviews, discuss the
reports with appropriate levels of management, distribute them to
the president and other levels of management as deemed
appropriate.
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Department of Internal Auditing HOTLINE: 866.294.5565 4/13/2015
Department of Internal Auditing
Internal Auditing at Georgia Tech
Continued…
5. Conduct follow-up on previously reported
recommendations.
6. Serve as liaison with federal, state, and other audit
agencies.
7. Operate independently of all Georgia Institute of
Technology operational activities to ensure complete
objectivity when conducting reviews of the valuations.
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Department of Internal Auditing HOTLINE: 866.294.5565 4/13/2015
Department of Internal Auditing
Internal Audit Primary Mission
Four Potential Orientations
Internal
Control
Active
Prevention
Solution
• Active promotion of
internal control agenda
• Recommending
preventive measures to
the campus unit and
advice in making changes
• Maintain objectivity while
eliminating unnecessary
organizational barriers
• Target process improvements
as a key goal
• Focus on Assessing Risk and
Management’s Mitigation of
Risk
• Work toward implementation
of cost-beneficial internal
controls & compliance
• Teamwork approach while
maintaining objectivity and
independent perspective
Detection
Advisory
• Focus on examination
of past transactions
• Report past problems
and recommend
solutions
• Maintain rigid
independence
• Defining process
improvement
opportunities, if seen
• By-product of internal
control assessment
but not focusing on
internal controls
• Moving away from
compliance auditing
Passive
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Department of Internal Auditing HOTLINE: 866.294.5565 4/13/2015
Business
Performance
Department of Internal Auditing
Audit Focus
Peeling the onion
Information Gathering
Monitoring – General Awareness
Informational Reviews –Surveying
General Controls
Audits of Compliance and Control
Risk Based Audits
Process Improvement/Reengineering
Strategy/Solution Development
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Department of Internal Auditing HOTLINE: 866.294.5565 4/13/2015
Department of Internal Auditing
IA Value as it Relates to Fraud
1. Information analysis expertise on large scale systems
for examination of fraud signatures
2. Providing a collaborative and cooperative bridge for
oversight, reporting, streamlined triage, and damage
control of fraud incidents
3. Central focus for facilitation of fraud identification
techniques specific to our infrastructure: a complex,
dynamic, white collar environment
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Department of Internal Auditing HOTLINE: 866.294.5565 4/13/2015
Department of Internal Auditing
Resulting Value of our Audit
Approach
Senior Management had a direct hand in identifying key areas
of risk and setting the scope of reviews... = “BUY-IN”
Audit Plan & Program seen as “valuable,” “useful,” “on-target,”
focusing on what matters”
Action Plan becomes a “Management Tool” not just an audit
report
Guiding the organization in developing a plan to manage its
risks
Lead to centralized policy improvements
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Department of Internal Auditing HOTLINE: 866.294.5565 4/13/2015