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Internal auditing strengthens the University’s ability to create, protect, and sustain value by providing independent, risk-based, and objective assurance and advice. The Office of Internal Audit supports the University by helping improve governance, risk management, internal controls, decision-making, accountability, and oversight. Internal auditing involves two types of engagements:

Assurance Engagements – an objective examination of evidence to provide an independent assessment of activity within an organization. Assurance activity is aimed at reducing risk and increasing confidence for stakeholders and are a required component of the Office of Internal Audit’s annual activity plan.

Advisory Engagements – used to facilitate strong risk management, control processes, and governance, without the internal auditor assuming management responsibility. Advisory engagements, also called consulting, are intended to improve processes rather than evaluate them after the fact. These engagements may or may not result in a formal report.

Engagement topics are selected through a risk-based planning process. Factors considered include:

• Memorial’s strategic objectives;
• Areas of significant inherent or residual risk;
• Significant change, emerging risks, and external environment risks;
• Input from senior leaders, stakeholders, and those involved in enterprise risk management;
• The adequacy of governance, risk management, and internal control processes;
• Regulatory and compliance requirements;
• Results of previous audits and the status of prior recommendations;
• Observations from other assurance providers;
• Internal Audit resources; and
• The appropriate balance between assurance and advisory work.

Management is responsible for establishing and maintaining effective internal controls. This includes senior management, deans, unit heads, administrators, and supervisors.

All employees contribute to an effective control environment by following policies, safeguarding resources, and identifying concerns when they arise. The Board of Regents also plays an important oversight role. Internal Audit supports the effectiveness of internal controls through independent assurance and advice, but is not responsible for establishing or maintaining those controls.

The Office of Internal Audit strives to make engagements collaborative, transparent, and focused on helping the University achieve its objectives. While every engagement is different, most follow a common process:

• Planning - Team members meet with key contacts to understand the area under review, identify engagement objectives, and determine the scope.
• Fieldwork - Information is gathered and analyzed through interviews, document reviews, process walkthroughs, data analysis, and other appropriate procedures.
• Discussion of Results - Potential observations are discussed with management periodically throughout the engagement to ensure accuracy, understand root causes, and consider practical solutions.
• Reporting – Team members communicate  engagement results, including strengths, opportunities for improvement, and agreed-upon actions.
• Follow-up – The Office of Internal Audit periodically performs follow-up on agreed-upon actions to monitor implementation and report progress to senior administration and the Board of Regents through the Audit and Finance Committee.

Throughout any engagement, the Office of Internal Audit works with management in a professional and constructive manner while maintaining its independence and objectivity. Our goal is to provide insight that helps strengthen governance, risk management, internal controls, accountability, and stewardship across the University.

The status of recommendations is periodically reported to senior administration and the Board of Regents through the Audit and Finance Committee. This process helps promote accountability, supports timely implementation of improvements, and enables effective oversight of key risks and controls across the University. The status of recommendations may be reported as:

Please also refer to the Procedure for Internal Audit Reporting.

The Office of Internal Audit provides independent, objective assurance and advisory services designed to help Memorial succeed. Whether a unit is planning a new initiative, improving an existing process, managing risk, or addressing a specific concern, we can support teams by:

• Offering an independent perspective on operations, risks, and controls;
• Identifying opportunities to improve efficiency, effectiveness, accountability, and compliance;
• Sharing leading practices and relevant benchmarks;
• Helping strengthen governance, stewardship, and decision-making;
• Reviewing financial, operational, and administrative processes;
• Facilitating discussion and collaboration among stakeholders; and
• Supporting management in monitoring agreed-upon actions.

The Office of Internal Audit aims to be a trusted resource that helps departments achieve their objectives while promoting effective stewardship of university resources.