This type of audit evaluates the reliability and integrity of the accounting system and its output. This means that a financial audit will provide assurance to the users of the University’s financial statements (such as the monthly statement of accounts) that financial reports are accurate and reliable. Audit Services considers the processes used to generate all the financial information that is utilized by administrators and management to manage the business of the University.

The objective of a financial audit is to evaluate the adequacy and the effectiveness of controls encompassing the organization’s governance, operations, and information systems with respect to financial reporting activities. Typically, we evaluate the:

• Reliability and integrity of financial and operational information;
• Safeguarding of assets; and
• Compliance with laws, regulations, and contracts.

In summary, the internal auditor performs procedures to provide a level of assurance to the Audit Committee, administrators and senior management that controls surrounding the processes supporting the financial reports are effective. This provides assurance that financial reports produced can be used to manage the business activities of the University.

The Division of Audit Services currently uses the risk-based audit approach in carrying out financial audits. Characteristics of this approach include:

• Identification of financial transactions that have a high exposure to risk (high volume of transactions or high dollar amount transactions);
• Examination of a sample of transactions covering revenues and expenditures; and,
• Assurance that controls governing financial reporting activities are effective.

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