Types Of Audits
Financial audits examine the accounting and reporting of financial transactions. The auditor reviews controls over the receipt and disbursement of funds, the safeguarding of assets, and the recording of transactions in accordance with Generally Accepted Accounting Principles, or GAAP.
Compliance audits review whether all applicable laws, regulations, policies, and procedures are followed. CSU campuses are subject to:
- Internal Revenue Code
- California Education Code
- State Administrative Manual (SAM)
- State University Administrative Manual (SUAM)
- Resolutions and policies established by the CSU Board of Trustees
- Executive Orders issued by the Chancellor
- Integraged CSU Administrative Manual (ICSUAM)
- Policies and directives issued by the Chancellor's Office, usually in the form of Coded Memoranda
- Campus policies and procedures
Operational or Performance audits examine whether the organization is using available resources in the most effective, efficient, and economical manner to achieve the unit's mission and objectives. This can include looking at whether good business practices and internal controls are followed, and whether operations or programs are carried out in accordance with established goals and plans.
Information Systems (IS) or Information Technology (IT) audits are a specialized type of audit that focus on the internal control environment of automated information processing systems. IS audits have become increasingly important as we automate more and more of our record keeping processes. IS audits typically evaluate input and output, system access and security, and backup and recovery plans.
Investigations are conducted when there is a suspicion or allegation of fraud, embezzlement, waste, or other "improper governmental activity" to use the legal term. Investigations involve the examination of records and interviews of employees to determine if any illegal activities have taken place, which if proven, normally lead to disciplinary action and/or criminal prosecution.