Work performed by Internal Audit can be categorized into three types: Unscheduled, Consulting and Scheduled.
These audits are performed upon request in response to an event. Timeliness is usually imperative with these types of audits. Therefore, other audit work may be put on hold to address the needs of a priority audit.
Unscheduled audits include investigative audits which are designed to verify the existence and magnitude of suspected fraud, abuse, and financial irregularities. Internal audit utilizes the highest level of discretion when undertaking such an audit. Internal Audit notifies the UW System Administration Office of Operations Review and Audit and any members of institutional management deemed appropriate.
Internal Audit can be utilized as a resource to provide opinions on proposed controls or control changes. By their nature, consulting work is not scheduled or planned. Consulting work may be short-term or long-term, such as during project implementations.
Consulting projects may range from formal engagements, defined by written agreements, to advisory activities, such as participating in standing or temporary management committees or project teams. An understanding of Internal Audit’s role during project implementations needs to be clearly defined at the start of the project.
Each year, Internal Audit develops an Internal Audit plan based on identified risks. This audit plan outlines the audits which Internal Audit intends to perform during the year. These audits are then scheduled with the appropriate stakeholders. These audits may be delayed due to the timing of unscheduled audits or consulting work.
The different types of scheduled audits include:
- Financial and compliance audits determine whether financial operations are properly conducted, whether the UWM accounting systems and internal controls are adequate, whether the financial statements are presented fairly, and whether UWM has complied with applicable laws, regulations, and provisions of contracts and grant agreements.
- Attestation and/or other financial-related engagements concern examining, reviewing, or performing agreed-upon procedures on a subject matter or an assertion about a subject matter and reporting on the results.
- Management audits determine whether UWM is managing its resources in an economical, efficient, and effective manner.
- Information technology (IT) audits determine whether UWM's IT environment supports the business objectives and whether undesired events are prevented or detected and corrected.
- Program evaluation audits determine whether the desired results or benefits of a UWM program are being achieved and whether program objectives established by the Board of Regents, Wisconsin State Legislature, UW System Administration, Chancellor, UWM or other authorizing body are being met.