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Mission Statement
The Internal Audit Office is an independent appraisal
entity which assists the Administration in the discharge of its
responsibilities by providing objective analysis, recommendations, and
comments regarding the various types of assurance and consultancy
service performed.
Vision
Statement
Internal Audit is the ethical conscience of the
institution, providing independent, objective assurance and
consultancy services in a professional manner, to the University and
its Medical Center
History
The Internal Audit Office of the American
University of Beirut was established approximately 30 years ago.
Article IV Section 6 of the Corporate Bylaws of AUB states:
"The Board of Trustees shall elect three or more Trustees to
constitute an Audit Committee. The Audit Committee shall recommend an
auditor for the Corporation to be appointed by the Board, shall define
the scope of the audit to be performed, and shall review the annual
financial statements of the Corporation prior to their submission to
the Board. The Audit Committee may examine and consider such other
matters relating to the internal and external audit of the accounts of
the Corporation and relating to the Corporation's financial affairs as
the Audit Committee may, in its own discretion, determine to be
desirable".
The Internal Audit Office was originally established with a Director
and two Assistants.
The Office was restructured and expanded on the recommendation of the
Vice President for Administration and presently consists of a Director
of Internal Audit, two Audit Managers, three Audit Assistants and a
Secretary.
The Director reports to the Audit Committee of the Board of Trustees
through the President of the University.
What is
Internal Audit?
Internal Audit is part of the University's
quality assurance mechanism. Internal Audit is responsible for
verifying that internal controls, the checks and balances in the
system, are in place and are effective.
Internal Audit is not responsible for the design or implementation of
internal controls-that is the responsibility of management. However,
Internal Audit can, and will, provide advice on such controls.
Similarly, Internal Audit is not the University's "Police Force" or
"Fraud Squad". Responsibility for internal controls and the detection
of irregularities rests with each department head. However, Internal
Audit can, and will, assist in the investigation of known or alleged
irregularities.
It is a policy of the University that any case of fraudulent activity
must be reported to the Internal Audit Office in accordance with the
University Policy on Fraud.
Methodology
There are four principal types of audit
undertaken by the Internal Audit Office:
Walk-through audits assess the basic internal controls (accounts
payable, travel expenses, cash handling, payroll distribution,
computer controls) of a department or cost center, to determine if
further audit work is required. Standard audit programs are followed
for this type of audit.
Process audits assess the controls over a process within the
university. As each process is different, a customized audit program
must be developed reviewed and implemented for each new audit.
Co-operative audits involve Internal Audit partnering with an auditee
to improve the effectiveness of operations. Internal Audit reviews
selected units and makes recommendations to management. The auditee is
responsible for implementation of recommendations that are agreed
upon.
Investigative audits in which the internal auditor examines and
reports on particular departments or operations. This work may be
requested by management or the Board of Trustees. It may also be
initiated by the Internal Audit Office in consequence of issues noted
during the course of other audit work.
Generally all audits follow the same basic steps:
1. Obtain an understanding of the department/function under review.
2. Notify and discuss with the administrative staff concerned the
purpose of the audit.
3. Identify issues of concern and formulate audit objectives.
4. Meet with the President, Vice President and/or Department Head,
depending on the type of audit, to discuss the audit and obtain input
and concerns.
5. Inform the person directly responsible for the daily operation of
the unit that an audit is planned.
6. Finalize audit objectives and tests.
7. Conduct the audit.
8. Review the results of the audit with the auditee.
9. Develop the Internal Audit recommendations.
10. Review recommendations and obtain management responses.
11. Issue an audit report.
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