Frequently Asked Questions
How are areas selected for an audit?
The Internal Audit Office prepares an audit plan on an annual basis. The audit plan generally includes a scheduled audit in each major organizational unit on a regular basis (every three to five years). The audit plan also has provisions for special management requests and investigations of possible irregularities in areas.
Factors that are considered in selecting units to be audited include:
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Results of the last audit of the area and length of time since last audit.
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The size and complexity of the operation.
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Potential risk of financial loss.
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Major changes in operations, program, systems or controls.
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Highly regulated operations or operations subject to a high level of public scrutiny.
What is the authority of the Internal Audit Department?
Internal Audit is authorized by the Chancellor to have unrestricted access to all UW-La Crosse records, property, and personnel. The Internal Audit staff makes every effort to ensure that security of assets and privacy of records are not compromised and services are not unnecessarily disrupted.
The Internal Audit Office reports to the Assistant Vice Chancellor of Budget and Finance. The department has no direct responsibility for any day-to-day University activities or operations. The Internal Audit Charter defines the policy, purpose, authority, and responsibilities of the department.
How long does it take to perform an audit?
Audits can take from a few days to several weeks depending on the complexity of the operation and the condition of the records. During the entrance conference, the estimated length of the audit will be discussed. As the audit staff becomes more familiar with the operation and the records, it becomes easier to estimate the length of time an audit will take. Throughout the audit, the staff will keep the auditee informed about the progress of the audit.
Can an audit be requested?
An internal audit can be very beneficial, especially if there has been a change in either the management of the area or in key personnel. An audit can provide an assessment of the current internal controls and assist in the modification of procedures. It will also provide an independent appraisal of the effectiveness and efficiency of an area's activities.
An audit can be requested by directly contacting the Internal Audit Office or submitting your request through the Assistant Vice Chancellor of Budget and Finance. The Internal Audit Department is also available for consultation without having to perform an official audit.
What is the policy on receipts?
All transactions must have a receipt. The receipt should be completed when the transaction is made. The payor should be given the original receipt if a receipt book is used. The carbon copy should be left in the book. If a receipt is voided, the original receipt must be attached in the receipt book.
Cash registers/terminals should be placed to enable the payor to see what is being rung up. The machine-printed receipt should be given to the payor.
How often must money be deposited?
Weekly deposits are required by Wisconsin State Statutes. Receipts totaling more than $1,000.00 should be deposited daily.
All departments should complete the standardized deposit slip when depositing cash with the Cashier’s Office. This form is located on the Cashier’s Office website. Account name, account number, description, and amount should be completed. Questions on an account name and code should be addressed to the Business Services Office and coding information will be provided. The period covered by the deposit should be entered on the deposit slip.
The Business Services Office is the only department authorized to have a bank account. All other departments are prohibited from opening any bank account to deposit state funds. All receipts collected by any department in the performance of assigned duties are considered state funds and must be deposited through the Cashier’s Office.
How long must I keep receipts and documentation?
Filled receipt books, or any other form of receipts, must be kept for a minimum of seven years. They can be kept in the department or given to the Business Services Office to store. The seven year requirement includes purchase documentation, sales documentation, and other paperwork necessary to fully understand the receipt of revenue or the expenditure of University resources.
What type of documentation does the auditor need?
The auditor will need documentation to verify any type of transaction made. Examples of this documentation are receipt books, register tapes, purchase requisitions, receipts from vendors, software licenses, deposit slips, inventory records, payroll time sheets, approval forms, etc.
Auditors often request documentation about departmental procedures and reporting structures. Examples of this type of documentation include policy and procedure manuals, flow charts, meeting minutes, organizational charts, etc.
Why should I reconcile my account?
It is important to reconcile in order to verify that revenue deposited has been properly credited to your account. It is possible for deposits to get posted for the wrong amount, to the wrong account, or to not get posted at all. The amount listed on the accounting records is the amount deposited to the account regardless of what may be written on a deposit slip.
It is important to reconcile to verify that all expenditures are properly charged to your account. It is possible for expenditures to be charged for the wrong amount, to the wrong account, or to not get charged at all.
It is also important that accounts be reconciled in a timely manner.
Why should there be segregation of duties?
Separation of duties is a measure of good accountability and internal control. This will ensure that one individual cannot perpetuate and conceal errors and irregularities in the normal course of duties. Segregation of duties is not always possible due to limited staff. Strong internal controls require the segregation of responsibilities for authorizing transactions, physical custody of assets and the related record keeping. For example, one individual could order, receive, approve for payment and verify charges to the monthly accounting report. One individual should not have the ability to receive payments through the mail, prepare the deposits, reconcile the bank statements, and post payments to the receivable system.