Shenzhen Internal Audit Service
Shenzhen hotline: 86-755-82147392 Email:info@citilinkia.com
Who are internal auditors?
As defined by the Institute of Internal Auditors (IIA), "Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Internal Auditors' roles include monitoring, assessing, and analyzing organizational risk and controls; and reviewing and confirming information and compliance with policies, procedures, and laws. Working in partnership with management, internal auditors provide the board, the audit committee, and executive management assurance that risks are mitigated and that the organization's corporate governance is strong and effective. And, when there is room for improvement, internal auditors make recommendations for enhancing processes, policies, and procedures."
Why does Cornell have an internal audit function?
The University Audit Office exists by charter and by-law to assist University management and the Audit Committee of the Board of Trustees in effectively fulfilling their responsibilities. We are charged with examining and evaluating the policies, procedures, and systems which are in place to ensure: the reliability and integrity of information; compliance with policies, plans, laws, and regulations; the safeguarding of assets; and, the economical and efficient use of resources.
Where does the audit function fit in the organization?
The University Auditor has a solid-line reporting relationship to Cornell's President and the Audit Committee of the Board of Trustees.
What's the difference between external and internal auditors?
External auditors can be government auditors or independent public accounting firms that Cornell hires. Government auditors focus primarily on compliance with government regulations and award terms. Since both federal and state governments fund a significant portion of the university's activities, they want to make sure we use their money as they intended.
Independent public accounting firms review the university's annual financial statements to ensure the information presented accurately portrays Cornell's financial condition. Government agencies, Cornell's Board of Trustees, and bond rating agencies rely on the independent auditor's opinion of Cornell's financial statements.
Internal auditors sometimes look at the same data or perform some of the same steps as external auditors. If there is a problem, it's better to find it and fix it before external auditors review our practices.
What if an external auditor contacts you?
All external audits should be coordinated through the University Audit Office or Sponsored Program Services. If you or your unit is contacted by an external auditor, before sharing any information, direct them to contact the University Audit Office or Sponsored Program Services. We can sometime dissuade an audit or at least minimize the impact on an operation.
How are units selected for audit?
Every two years, the University Audit Office performs a comprehensive risk assessment. First, the university is broken down into audit risk areas, such as Sponsored Research, information systems or processes. Next, key stakeholders evaluate the likelihood of an adverse event and the impact or potential potential damage the adverse event would have to the university. The audit office then decides which areas to audit based on these risk rankings and the audit resources available.
What are internal auditors looking for?
Primarily compliance with university policies and sound internal controls. Cornell's policies are designed to help ensure we all comply with applicable laws and regulations and operate efficiently. By following these policies we help protect the university from unnecessary risks and help ensure sound business practices are consistent throughout the university. University policies can be found here: http://www.policy.cornell.edu. However, not all internal controls can be codified in policy. If we find control weaknesses, we regularly make recommendations to implement a control even though it may not be specifically required by policy.
What if something isn't handled correctly?
We will make recommendations for improvement. The recommendations are realistic because we want you to implement them. It is the responsibility of management to weigh possible additional costs of implementing our recommendations in terms of benefits to be derived and the relative risks involved.
Is the Audit Office part of the Division of Financial Affairs?
No, the Audit Office works independently of the Division of Financial Affairs. Our office has a solid-line reporting relationship to Cornell's President and the Audit Committee of the Board of Trustees.
Can a department request an audit?
Yes! We consider requests for audit work, although our ability to perform the audit might be affected by our staffing levels, or year end deadlines. Still, if you are concerned about an area in your department, we will try to make time for a limited examination of the area.
How long does an audit take?
We budget between 200 and 600 hours for a typical audit, depending on the size and complexity of the area. We normally have one auditor leading the audit, and auditors will sometimes have more than one audit in process at a time, so an audit could take from two months to six months to complete.
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82148419, 86-755-82143512, or emailing to info@citilinkia.com