4. Filing System

Structure and Indexing

In order to accomplish our objectives it is desirable that there be reasonable uniformity in the arrangement and organization of working paper schedules.

To facilitate the physical arrangement of the workpapers, an indexing system is utilized. The index system is not standardized as to content with the exception of the General section. The scope of the work to be performed, as outlined by the audit steps within each audit program, will determine the indexing of the Fieldwork section.

Each major division of the Fieldwork section will be designated by alphabetical letters. Each division of the workpapers begins with an Audit Division Form which is indexed with the letters plus the number of the division, such as CR-1. If a workpaper has more than one page, the pages should be indexed as follows: CR-1/1, CR-1/2, etc. Indexes contained in the General section are strictly numerical (100-1, 100-1/1, etc.).

Contents of Sections and Division

The General Section contains the following major divisions:

100. Audit Review and Approval

This section will include the Audit Review and Approval worksheet and certifies that the Audit Department has performed a complete review in accordance with Generally Accepted Audit Principles and has been reviewed by management.

200. Audit Program and Time Summaries

The audit program should provide a detailed outline of the specific auditing procedures to be performed in obtaining the overall audit objective. During the performance of the audit, each staff member records his/her personal time log with itemized actual time by audit step. This data is summarized and posted to the Time Summary.

300. Findings, Recommendations, and Management Comments

This section will contain the Management Comment Letter. The Management Comment Letter will consist of six basic sections. These are:

1. Background.

2. Process/Methodology. Describes the methodology used for the audit.

3. Strengths. Areas of strength exhibited by the department during the course of the audit.

4. Opportunities for Improvement. This is intended to be a summary and general categorization of the opportunities for improvement for the department. Specific findings and recommendations are located in a separate paper.

5. Follow-Up. This section generally describes the follow-up procedures to be used by Campus Audit to determine the completion and implementation of recommendations.

6. Conclusion.

After the Management Comment Letter will be a Summary Action Plan. This plan consists of the specific audit control objective, the finding that conflicts with the audit control objective, and a recommendation for correcting that discrepancy. The general control objectives are:

1. Authorization

2. Segregation of Duties

3. Recording.

4. Safeguarding.

5. Reconciliation.

6. Cost-benefit.

Departmental responses to the findings and recommendations as well as any follow-up actions will be contained in this section.

400. Organizational Chart and Department Background

A copy of the department’s organizational chart should be included here. Any pertinent information that explains unique characteristics of the department should also be included.

500. Correspondence

General correspondence related to the audit but not specific to a portion of the fieldwork should be included here.

600. Audit Objective

This section contains the audit objective and scope of the audit.

700. Financial Reports

This section should include the three-year comparative financial report for the department as well as any general financial information not included in specific portions of the fieldwork.

800. Significant Contracts and Agreements

Any significant contracts affecting the organization, whether revenue-producing or of significant expenditures, should be included in this portion.

900. Internal Control Reviews and Audit Programs

A copy of each internal control review should be placed in this section in the order the review was performed. Copies of self-assessments performed by the department should also be included here.

Fieldwork and Workpapers

The fieldwork section will vary as to content due to the uniqueness of each audit. However, each major division will follow the same format as to structure of the contents. The format of the individual sections indexed CR, CD, etc., provide the evidence of the audit work done and should be set up in a similar structure.

File Maintenance

The audit file is the property of the Campus Audit Department and it should be kept under strict control to avoid misuse, removal or changing of information in it, or the unauthorized reading of its contents. During the fieldwork, the files should be kept in the auditor’s physical possession or under lock and key. The audit file may remain in the auditor’s possession until followed up or transferred to the office file after scheduling follow-up date in the personal workplan. In the office, they should be kept in locked files and should be signed out when removed from the files for review by authorized personnel outside the Campus Audit Department or members of the audit staff. Reviews by external personnel should take place in the Campus Audit Department office to prevent removal or substitution of documents.