Audits

Internal Audit

The mission of the University of Alberta Internal Audit Services office includes three core activities:

  1. Internal Audit Services evaluates and enhances the effectiveness of risk management, control and governance processes at the University of Alberta by providing independent, objective assurance and consulting services designed to add value and improve university operations.  The scope of this service includes all university units and operations.

  2. All suspected instances of fraud and irregularity must be reported to the University Auditor. Internal Audit Services coordinates the university’s response to all such allegations. The university is committed to high standards of ethics, conduct and fiduciary responsibility and has established a protocol for reporting and reviewing incidents of suspected fraud and irregularity to ensure the response is handled in a confidential, timely, appropriate and consistent manner and that measures to prevent recurrence are taken.

  3.  Internal Audit Services facilitates other audit-related activities including working with external audit groups to help coordinate efforts and reduce overlap, and supporting both enterprise risk management processes as well as institutional compliance management efforts

Link:

Internal Audit Services

UAPPOL:

Fraud and Irregularity Policy

Fraud and Irregularity Reporting and Response Procedure 
 

Auditor General Audit 

 

Per Provincial Government Statute, the Auditor General is the auditor of every provincial agency.

The Auditor General performs an annual integrated audit of the university’s financial statements.

The annual audit process involves three stages:

 

Timing

Focus

1st Interim Audit – November

university business processes

2nd Interim Audit – February

testing of transactions

Year-end Audit – April/May

financial statements

 

During the interim and year-end audit, the auditors may contact units directly to review processes, source documents, and other information. Since the audit is integrated in nature, the review includes the IT systems related to the financial statements and therefore IST-Enterprise Applications and Internal Audit Services assist directly in a technical and facilitative role for those elements.

Financial Services manages and coordinates the annual audit on behalf of the University.
  

External Audit Process

The university is required to provide audited financial statements to the public, including donors and sponsors.

Units are required to ensure all activities outlined in the year-end schedule are completed by the stated deadlines. Once all transactions are entered into the system, central services units process final year end accounting entries (reclassification, etc.) and perform the year end closing process. Financial Services then has approximately two weeks to finalize draft financial statements (plus all supporting working papers, analysis, and reconciliations).

During the audit period, central services units and other units may be requested by external auditors to:

  • respond to audit-related questions
  • review working papers with the auditors
  • locate source documents for audit review
  • provide additional analysis as requested

As part of the final year-end activities, Financial Services must prepare financial statements and supporting notes which are submitted to the Board of Governors in early June each year. After Board of Governor approval, the financial statements are made available to the public.

All transactions incurred by units impact the financial statements of the university and are subject to audit review. Units are required to retain and file source documents in as central a location as possible within the faculty or department to facilitate easy retrieval for audit purposes. Refer to Chapter 6: General Financial Information/Retention and Filing of Source Documents for further information.

Other External Audits and Review Engagements

Type Of Audit

Details

Granting Agency/Sponsor

Granting agencies and sponsors retain the right to audit or perform a financial monitoring review.

Agency/sponsor audits and reviews must be coordinated as follows:

  • Units must inform the Research Services Office (RSO) of any agency/sponsor audit or review related to research funding. RSO will advise Internal Audit Services and Financial Services that the audit/review will take place, and will manage and coordinate the activity on behalf of the university.
  • Units must inform Financial Services (FS) of all other agency/sponsor audits or reviews. FS will advise Internal Audit Services that the audit/review will take place, and will manage and coordinate the activity on behalf of the university.

Canada Revenue Agency (CRA)

Managed and coordinated by Financial Services, except as noted below:

  • Goods and Services Tax (GST)
  • Donation Receipts
  • Customs and Duty
  • Payroll (deductions) – managed and coordinated by Payroll & Benefit Services

Workers Compensation Board (WCB)

Managed and coordinated by Payroll & Benefit Services.

Request for Audited Project Financial Statements

A sponsor may require that an audited financial statement be prepared for a specific project. Units should request that this condition be deleted when negotiating the terms with the sponsor. The university is audited annually by the Auditor General, and the audited financial statements are on the Financial Services website. In most cases this should be sufficient for the sponsor.

If, however, the sponsor still insists on an audited financial statement for the project, the unit will be responsible for paying for and coordinating the audit. An audit is costly and can be time consuming. Units should negotiate with the sponsor to include the cost in the project budget. If the sponsor does not agree, the unit will fund the cost from the operating budget.

Note:  

Audit services are closely regulated and there are compliance requirements associated with an audit activity. Neither Financial Services nor Internal Audit Services staff are registered for providing this type of service.


Last Updated: November 2015