Internal Audit Policy

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Questions and Answers

What is the primary objective of Internal Audit in reviewing internal controls?

To investigate employee misconduct

To detect fraud and corruption

To evaluate the soundness, adequacy, and application of internal controls (correct)

To develop new policies and procedures

What is the responsibility of auditors when they find material discrepancies?

To report them to the Sheriff

To ignore them and focus on other areas

To correct them without informing anyone

To report them to applicable command levels (correct)

What should auditors have to support their conclusions and recommendations?

Unsubstantiated claims

Adequate and relevant evidence (correct)

Only verbal testimony

Inadequate and irrelevant evidence

What is the responsibility of the Internal Audit Director upon completion of an audit?

To assess if audit objectives were achieved Signup and view all the answers

What should audited directors do in response to audit recommendations?

Prepare a response on each recommendation Signup and view all the answers

What is the purpose of the follow-up procedure?

To monitor the implementation of audit recommendations Signup and view all the answers

What should be maintained according to the policy?

Control accounts Signup and view all the answers

What is the primary focus of BSO expenditures and revenue?

To meet BSO goals and objectives Signup and view all the answers

Who is responsible for implementing or rejecting Internal Audit report recommendations?

Directors Signup and view all the answers

What happens to Internal Audit reports with disputed findings and/or recommendations?

They are sent to the Sheriff to determine the audit report's recommended implementation Signup and view all the answers

How often are petty cash and informant funds audits conducted?

Quarterly Signup and view all the answers

Who receives the audit report(s) of petty cash and informant funds?

The Sheriff or designee Signup and view all the answers

What is the purpose of the audit report(s) of petty cash and informant funds?

To document the results of the audit Signup and view all the answers

What is the effective date of the revised policy on Internal Audit reports and petty cash and informant funds audits?

10/14/2021 Signup and view all the answers

What is the primary goal of Internal Audit in BSO activities?

To recommend efficient internal controls Signup and view all the answers

Who does Internal Audit report to?

The Major - Inspector General, Bureau of Compliance and Accountability Signup and view all the answers

What is one of the aspects of internal controls established by BSO?

Safeguarding its assets Signup and view all the answers

What is the responsibility of Internal Audit regarding BSO assets?

To review and report on BSO assets, interests, and safeguards against losses Signup and view all the answers

Why is independence essential for Internal Audit?

To allow auditors to perform their duties effectively and impartially Signup and view all the answers

What is one of the aspects of Internal Audit's independent operation?

Independence from all BSO financial operations Signup and view all the answers

What is the scope of Internal Audit's auditing activities?

Unrestricted, in compliance with generally accepted auditing standards Signup and view all the answers

What is one of the rights of Internal Audit's auditors?

The complete right of access to records, assets, and employees including confidential information Signup and view all the answers

Study Notes

Internal Audit

Internal Audit recommends efficient internal controls of BSO activities to safeguard its assets, ensure records reliability, promote operational efficiency, and monitor adherence to policies and procedures.
Internal Audit reports to the Major - Inspector General, Bureau of Compliance and Accountability.

Internal Audit Responsibility and Authority

Internal Audit reviews, appraises, and reports on the soundness, adequacy, and application of internal controls.
Internal Audit assesses BSO assets, interests, and safeguards against losses due to fraud, waste, inefficient administration, and other causes.
Internal Audit evaluates the suitability and reliability of financial and other BSO management data.

Independent Operation

Internal Audit must be sufficiently independent to allow its auditors to perform their duties effectively and impartially.
Internal Audit has direct access to all directors and the Sheriff.
Internal Audit is independent from audited command staff and all BSO financial operations.
Internal Audit has the right to report on any BSO financial operation.

Internal Control

Internal Audit reviews the soundness, adequacy, and application of internal controls.
BSO plans and controls its expenditures and revenue to meet its goals and objectives.
Expenditures and revenue are in accordance with BSO policies, procedures, and the law.
BSO assets are kept in proper custody and not wrongly applied by error or intent.

Irregularities and Fraud

Internal Audit attempts to reveal serious defects in internal control systems.
Auditors are alert to corruption possibilities and report all material discrepancies.
Auditors inform applicable command levels of justifiable findings.

Audit Reports

Auditors must have adequate and relevant evidence to support their conclusions and recommendations.
Findings and recommendations are promptly given to the Executive Director, Department of Professional Standards to forward to applicable directors and/or the Sheriff.

Audit Completion and Follow-Up

Upon completion, the Internal Audit Director assesses if audit objectives were achieved.
Auditors ensure audits have adequate support documentation on findings and conclusions.
Auditors prepare a complete and accurate report.
Audited directors prepare a response on each recommendation within 30 days after receipt of the audit report.
Audited directors' responses are included in the final audit report.

Management Responses

Directors are responsible for the implementation or rejection of Internal Audit report recommendations.
Internal Audit reports with responses from directors that dispute findings and/or recommendations are sent to the Sheriff to determine the audit report's recommended implementation.

Petty Cash and Informant Funds Audits

The Internal Audit Director or designee conducts an audit of petty cash and informant funds quarterly.
The results of the audit(s) are documented in an audit report(s).
The audit report(s) are submitted to the Sheriff or designee.

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Description

This quiz covers the internal audit policy of the Sheriff's office, including its purpose, responsibilities, and role in ensuring efficient internal controls. It also touches on the importance of internal controls in safeguarding assets, ensuring records reliability, and promoting operational efficiency.