Internal Audit

Audit Process:

Each year the Internal Auditor reviews the audit plan. Audits are selected through a risk analysis process to concentrate on those areas of greatest risk and opportunity for improvements. Also, audit areas are selected based on requests from the Audit Committee, Board of Trustees, Executive Director, and all levels of management.

Audits are performed in four phases:

1. Survey and research: completes the Internal Auditor's understanding of the audit area and finalizes the audit's scope and objectives. The Internal Auditor may develop potential points for improvement.
2. Fieldwork: the audit activities related to identifying, testing, and evaluating key controls of the functions under audit. In this phase, the Internal Auditor develops adequate evidence for audit observations and recommendations.
3. Reporting: a written audit report summarizing observations made. After agreement is reached on the observations, a final report containing the audit results is issued. The area under audit will issue a response to the recommendations made, if applicable, within 30 days of the audit report's issuance date.
4. Follow-up: a periodic review with the management of KRS to assess the progress of agreed upon improvements.

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