Download - Significant Audit & Risk Assessment
Significant Audit & Risk Assessment
Presented by Sandra Healy, CGFMPrincipal Auditor
Idaho Transportation Department
Audit of Idaho Transportation Dept’s Division of Motor Vehicles - 2009Vehicle Services Section & Financial UnitFraud discovered at a county DMV officeData analysis
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County Headline
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DMV & CountiesDMV works closely with countiesMOA’s with Assessors & Sheriffs OfficesRisks & Internal ControlsData analysis of all countiesVisits to 23 assessors offices/44 counties
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Visits to CountiesGoal:
Gather best practicesOffer suggestions to improve internal controls
Wide range of cash handling proceduresCounties welcomed internal control ideasAda County Internal Auditor
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Assessors’ ConferencePresented on cash handling internal controlsShared concerns about safeguarding cashBest practices to be distributed to counties
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Results of DMV AuditFinancial unit became the Internal Control,
Fraud Prevention and Finance unitIncreased emphasis on internal controls,
fraud detection & preventionCentralized DMV mail handling to secure
receipts and distribute work to unitsProvided ‘Items for Consideration’ in
development of new data base system
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Individual Audit Risk AssessmentRisk assessment for internal auditsImprove Internal Control awareness and
educationSurvey of employees on their unit’s internal
controls
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Pilot Training ProgramDeveloped Internal Control training for front
line employees
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ObjectivesInteractionIncrease awarenessIncrease understandingConfidence to speak upConfidence to suggest improvementsSurvey
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BrainstormingWhat are Internal Controls?What is the purpose of Internal Controls?What is ethical behavior?
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Understanding Internal ControlsYou may or may not realize that you are
affected by internal controls throughout your daily lives.
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COSO MODEL
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Control EnvironmentFoundation of internal controls
Baseball exampleIntegrity and ethical valuesCommitment to competency (staff)Management’s philosophy & operating styleManaging changeCommunication
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Control Environment
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Your Section
DMVITD
Accountability
Transparency
Efficiency
Cus
tom
er S
ervi
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Risk AssessmentKnow your goals & objectivesIdentify potential risks to the achievement of
goals & objectives. Risks are the opposite of goals & objectivesRisks are what are addressed by internal
controls
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Control ActivitiesPolicies, procedures and other safeguards to
ensure objectives are accomplished
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Information & CommunicationInformation must be identified, captured and
communicatedCommunication must go up, down and across
an organization and must be timelyCommunication enables people to carry out
their responsibilities
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MonitoringEvaluation and feedback processes (self
evaluations, performance evaluations, peer reviews, audits, reports)
Monitor organizations performance over timeMonitoring should be a regular activity
Part of culture
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Internal Control SurveySend employees link to survey in SharePointPositive statements on internal controlsStatements grouped by 5 componentsStrongly agree to strongly disagreeComment section for ‘disagree’ and ‘strongly
disagree’ responsesCalculated weighted average for each
componentCompiled commentsSurveys were anonymous
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Results
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Survey ResultsSignificant # of commentsUsed in audit planning for Motor Carrier
Services UnitShared with DMV management and HRHeld meetings with employees to discuss
resultsRequested feedback on the training & survey
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In SummaryDMV is inherently a high risk areaInternal Control training at staff level
beneficialEmployees felt a part of the processSurvey provided insight into the unit’s
environmentAudit planning feedbackSurvey designed for use
in any section
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Thank You
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Contact InformationSandra Healy, CGFM Principal AuditorIdaho Transportation DepartmentOffice of Internal ReviewPO Box 7129Boise, ID [email protected]
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