You are the Chief Audit Executive (CAE) and you are establishing a brand-new internal audit function at a mid-sized college.
Using the information provided below:
You will document your risk assessment for each of the organizational units using a risk matrix. Each unit should be assessed using 4 factors financial, compliance, customer service and reputation.
You will provide an explanation of your impact and likelihood assessments for two units.
You will create an audit universe record for one of the units.
Part 2:
Using your audit universe risk assessment, create a 5-year plan. Assume that 2022 is the first year of internal audit activities.
Part 3:
Create an annual audit plan for 2022
The Organizational Units: Departments Division Board of Governors President Audit Universe Item Audit Type 1 Vice President Academic Academic Development Reporting 2 3 Business Development Compliance Operational Reporting 4 5 6 7 International Education Centre Faculty of Arts Media and Design Compliance Compliance Compliance Academic Operations & Planning Applied Research Corporate Training Workforce and Personal Development Language Institute School of Media and Design Career and Academic Access Centre General Arts and Science School of Health and Community Studies Police and Public Safety Institute Heritage Institute School of Advanced Technology Centre for Construction Excellence 8 9 Compliance Compliance Faculty of Health, Public Safety & Community Studies 10 Compliance 11 12 Faculty of Technology and Trades Compliance Compliance 13 Compliance 14 15 School of Business Centre for Continuing and Online Learning Personal Development Institute Compliance Compliance 16 Compliance 17 18 Learning and Teaching Services Vice President Finance and Administration College Ancillary Services Finance and Administrative Services Information Technology Services Physical Resources Vice President Human Resources Human Resources Operational Operational Operational Operational 19 20 College Residences 21 22 Compliance Operational Accessibility and AODA Compensation, Pension & Benefits Organizational Effectiveness Labour Relations 23 24 25 26 Operational Compliance Reporting Reporting Centre for Organizational Learning College Foundation Alumni Relations Registrar's Office 27 28 29 30 31 32 33 Student Support Services Admission Operational Convocation Reporting Fees and Financial Aid Operational Information, Records and Operational Transcripts Registration Operational Scheduling (Timetables) Reporting Centre for Students with Compliance Disabilities Counselling Services Compliance Health Services Compliance Learning Resource Centre Safeguarding Assets Ombudsman Operational Residence Life Services Operational Student Affairs and Orientation Reporting Student Employment Services Operational Test Centre Compliance 34 35 36 37 38 39 40 41 Executive Director Advancement Communications 42 Event Management 43 44 45 Government Internal Communications Media Relations Creative Services Web Services Safeguarding Assets Compliance Reporting Reporting Reporting Reporting Operational Marketing 46 47 48 Sales and Student Recruitment Risk Assessment Factors: Financial Rating Weight Impact Scale Likelihood Scale . 3 There is a potential for material impact on Business activities are not proven the organization's earnings, assets, or stakeholders. M 2 The potential impact may be significant to Innovative but leverages existing the audit unit but moderate in terms of the idea total organization L The potential impact on the organization is Well proven concept minor in size or limited in scope. 2 1 Rating Weight H 3 3 Compliance Impact Scale Non-compliance could result in loss of licences or jail time for senior officers. Non-compliance could result in fines io. excess of $100,000 Non-compliance could result in a warning or small fine Likelihood Scale Highly regulated impacts daily operations Regulated limited impact of daily operations Not regulated M 2 L 1 Likelihood Scale Highly involved in community, extensive community sponsorship Reputation Rating Weight Impact Scale H 3 Publicity of the event would generate national and or international press attention. M Publicity of the event would generate regional press attention. L Knowledge of the event would be contained to employees. Unintended disclosure of the event would generate minor embarrassment. 2 Some community involvement 1 Limited community involvement Rating Weight H 3 3 M Customer Service Impact Scale Likelihood Scale Customer Service issues are prolonged and Many student/community could cause loss of 15% of customer base. interactions Customer Service issues are temporary and 1 or 2 interactions a day could cause loss of 5% of customer base. Customer Service issues are isolated and would 1 or fewer interactions a week not cause noticeable loss of customer base. 2 L 1 Risk Scores and Audit Cycle: LEVEL H M RISK SCORE RANGE 23-36 11-22 4-10 RECOMMENDED AUDIT CYCLE Every 3 years Every 5 years At the request of management L Audit Budgets in Days: High Risk Type of Audit Reporting Safeguarding Assets Operational Compliance 75 Days 50 Days 150 Days 75 Days Moderate Risk 50 Days 30 Days 100 Days 50 Days Low Risk 25 Days 15 Days 50 Days 25 Days Internal Audit Resources available for Audits each year: Available Direct Audit Days Staff Member CAE Audit Manager Auditor 1 Auditor 2 Auditor 3 Auditor 4 Auditor 5 Information System Auditor Co-op Student Total 100 150 200 200 200 200 200 200 50 1500 Internal Audit Resources available for Monitoring and Special request each year: In each year, the Department sets aside 10% of its direct audit resources for audit monitoring activities and a further 15% allocation for direct audit resources for management special requests. The Organizational Units: Departments Division Board of Governors President Audit Universe Item Audit Type 1 Vice President Academic Academic Development Reporting 2 3 Business Development Compliance Operational Reporting 4 5 6 7 International Education Centre Faculty of Arts Media and Design Compliance Compliance Compliance Academic Operations & Planning Applied Research Corporate Training Workforce and Personal Development Language Institute School of Media and Design Career and Academic Access Centre General Arts and Science School of Health and Community Studies Police and Public Safety Institute Heritage Institute School of Advanced Technology Centre for Construction Excellence 8 9 Compliance Compliance Faculty of Health, Public Safety & Community Studies 10 Compliance 11 12 Faculty of Technology and Trades Compliance Compliance 13 Compliance 14 15 School of Business Centre for Continuing and Online Learning Personal Development Institute Compliance Compliance 16 Compliance 17 18 Learning and Teaching Services Vice President Finance and Administration College Ancillary Services Finance and Administrative Services Information Technology Services Physical Resources Vice President Human Resources Human Resources Operational Operational Operational Operational 19 20 College Residences 21 22 Compliance Operational Accessibility and AODA Compensation, Pension & Benefits Organizational Effectiveness Labour Relations 23 24 25 26 Operational Compliance Reporting Reporting Centre for Organizational Learning College Foundation Alumni Relations Registrar's Office 27 28 29 30 31 32 33 Student Support Services Admission Operational Convocation Reporting Fees and Financial Aid Operational Information, Records and Operational Transcripts Registration Operational Scheduling (Timetables) Reporting Centre for Students with Compliance Disabilities Counselling Services Compliance Health Services Compliance Learning Resource Centre Safeguarding Assets Ombudsman Operational Residence Life Services Operational Student Affairs and Orientation Reporting Student Employment Services Operational Test Centre Compliance 34 35 36 37 38 39 40 41 Executive Director Advancement Communications 42 Event Management 43 44 45 Government Internal Communications Media Relations Creative Services Web Services Safeguarding Assets Compliance Reporting Reporting Reporting Reporting Operational Marketing 46 47 48 Sales and Student Recruitment Risk Assessment Factors: Financial Rating Weight Impact Scale Likelihood Scale . 3 There is a potential for material impact on Business activities are not proven the organization's earnings, assets, or stakeholders. M 2 The potential impact may be significant to Innovative but leverages existing the audit unit but moderate in terms of the idea total organization L The potential impact on the organization is Well proven concept minor in size or limited in scope. 2 1 Rating Weight H 3 3 Compliance Impact Scale Non-compliance could result in loss of licences or jail time for senior officers. Non-compliance could result in fines io. excess of $100,000 Non-compliance could result in a warning or small fine Likelihood Scale Highly regulated impacts daily operations Regulated limited impact of daily operations Not regulated M 2 L 1 Likelihood Scale Highly involved in community, extensive community sponsorship Reputation Rating Weight Impact Scale H 3 Publicity of the event would generate national and or international press attention. M Publicity of the event would generate regional press attention. L Knowledge of the event would be contained to employees. Unintended disclosure of the event would generate minor embarrassment. 2 Some community involvement 1 Limited community involvement Rating Weight H 3 3 M Customer Service Impact Scale Likelihood Scale Customer Service issues are prolonged and Many student/community could cause loss of 15% of customer base. interactions Customer Service issues are temporary and 1 or 2 interactions a day could cause loss of 5% of customer base. Customer Service issues are isolated and would 1 or fewer interactions a week not cause noticeable loss of customer base. 2 L 1 Risk Scores and Audit Cycle: LEVEL H M RISK SCORE RANGE 23-36 11-22 4-10 RECOMMENDED AUDIT CYCLE Every 3 years Every 5 years At the request of management L Audit Budgets in Days: High Risk Type of Audit Reporting Safeguarding Assets Operational Compliance 75 Days 50 Days 150 Days 75 Days Moderate Risk 50 Days 30 Days 100 Days 50 Days Low Risk 25 Days 15 Days 50 Days 25 Days Internal Audit Resources available for Audits each year: Available Direct Audit Days Staff Member CAE Audit Manager Auditor 1 Auditor 2 Auditor 3 Auditor 4 Auditor 5 Information System Auditor Co-op Student Total 100 150 200 200 200 200 200 200 50 1500 Internal Audit Resources available for Monitoring and Special request each year: In each year, the Department sets aside 10% of its direct audit resources for audit monitoring activities and a further 15% allocation for direct audit resources for management special requests
