The internal audit process consists of planning, data gathering, testing, summarizing, evaluating, and reporting. As part of the planning stage, an initial meeting is held with the Department to be audited. The culmination of fieldwork results in a draft audit report, which includes the audit's purpose, scope of work, background, overall evaluation, and applicable findings. (Findings are instances of non-compliance with laws and regulations, internal control weaknesses, and areas where economy and efficiency can be improved.) Each finding should have five elements to it including: condition, criteria, cause, effect, and recommendation.
After the fieldwork is completed, a thorough quality review of the audit workpapers and draft report is performed to ensure that work was performed as planned and is properly documented. The draft report is reviewed to ensure that conclusions and findings are supported by evidence obtained through inquiry, observation, and third parties.
A draft audit report is presented to County Department management for review and discussion. Under Deschutes County policy (GA-15 - Responding to Report, Study and Audit recommendations), the auditee is allowed two weeks to provide a written reply to the findings and recommendations. Once the response is received, the County Internal Auditor reviews it for adequacy and possible rebuttal. If none is warranted, management's response is attached as an exhibit to the audit report. The audit report is then issued. Copies are routinely issued to affected management, the Audit Committee, the County Administrator, and the Board of County Commissioners.
