- What is the difference between University Compliance Services and Internal Audit at UT Arlington?
- What should I do if I suspect ethical violations, fraud, or a breach of the Standards of Conduct?
- Why was I selected to be audited?
- Are auditors looking for fraud when performing audits?
- Who audits the auditors?
What is the difference between University Compliance Services and Internal Audit at UT Arlington?
UT System Policy UTS 129, Internal Audit Activities, http://www.utsystem.edu/policy/policies/uts129.html clarifies the roles of University Compliance Services and Internal Audit in managing institutional risks.
Internal Audit is an independent function of the governance process of the University of Texas System. It provides periodic assurance to the Board of Regents and executive management on the component institution's ability to achieve its objectives.
University Compliance Services is part of the control structure of the organization, whereas Internal Audit evaluates the control structure - a key difference between the two functions.
Internal Audit may provide consulting and assurance services to the compliance function. Consulting services may include: providing information and best practices in the design of the compliance function; providing advice and information in the design of monitoring plans; providing training and educational services; and providing facilitation services for self-assessments of the compliance function. Internal Audit services may include: audits of the compliance program design; audits of University Compliance Services' monitoring plans; audits of compliance issues; and inspections of the monitoring plans.
For additional information on UT Arlington's University Compliance Services, please visit their website at http://www.uta.edu/compliance/
What should I do if I suspect ethical violations, fraud, or a breach of the Standards of Conduct?
Employees shall notify their supervisor, the University Compliance Services' Compliance and Ethics Officer (817-272-2080), or Ethics Hotline (1-877-507-7314) of all suspected ethical violations, fraud, or a breach of the Standards of Conduct.
Why was I selected to be audited?
The University conducts a regular, ongoing examination of its internal controls, and as part of this process, the Department of Internal Audit conducts approximately 20 audits annually. Primary considerations in establishing which units will be audited include evaluation of risk, the results and length of time of previous internal and external audits, and specific requests from administrators. Audits for many high risk units are scheduled on a three-year cycle, while other units are randomly selected for audits. In addition, internal audits are initiated to investigate possible irregularities.
The Director of Internal Audits prepares an annual plan which is reviewed and approved by the Audit Committee and The University of Texas System Audit Office to ensure that objectives, scope and allocated audit hours support management goals. The plan is primarily developed based on the assessment of various risk factors such as: significant financial investment or impact, required regulatory or legal compliance, complex transactions or environment, new technology or processes and prior audit experience. Management requests, external audit support and standard annual audits are also included. Additionally, there are always projects we undertake that were unanticipated when the annual plan was developed.
Are auditors looking for fraud when performing audits?
Auditors are not specifically searching for the existence of fraud. However, while conducting audits in accordance with the Institute of Internal Auditor's "Standards for the Professional Practice of Internal Auditing," improper activities may be identified.
A good system of internal controls and a control conscious organizational environment will reduce this risk.
Who audits the auditors?
Oversight of the Internal Audit Office is performed by the Institutional Audit Committee and the UT System Audit Office. In addition, a Quality Assurance Review, or peer review, is performed every three years by qualified auditors (external to the organization) in accordance with Professional Standards.
Also, in most instances, audit clients have an opportunity to evaluate the quality of service provided by our department by completing an evaluation form which we use to identify ways to improve our services.
If you are aware of a fraudulent act that was committed by a member of the UT Arlington campus community, you have the responsibility to notify either your supervisor, the appropriate Administrator, Office of Internal Audit or UT Arlington Police Department. Employees who in good faith report unlawful activity are protected by the Texas Whistle-Blower Act against retaliation.
To report fraud, waste or abuse at UT Arlington, contact the Ethics Hotline at 1-877-507-7314, or email firstname.lastname@example.org. You can also contact the State Auditor’s Office at:
1-800-TXAUDIT (1-800-892-8348), or online at http://sao.fraud.state.tx.us/.
If you are being audited, take a look at our Clent Resources section to better understand the process and expectations. Audits and reviews can be valuable and beneficial to your department - a surprisingly insightful experience.