The Value of internal Audit at Georgia Tech

1. The Value of internal Audit at Georgia Tech Department of Internal Auditing

2. The value of Being an Internal Auditor Department of Internal Auditing • Broad view of the entire institution • Diverse work • Exposure to all parts of organization • Exposure to new technologies and practices and emerging issues • Because we have an opportunity to help the organization and to make a difference

3. A Layman's Statement about Internal Audit Department of Internal Auditing “As an internal auditor, I do for the officers and management of the university what they would do themselves, if they had the time. I act as senior management’s ‘eyes’ and ‘ears’ making sure that the Institute’s assets are protected and that we are being good stewards of the resources that have been entrusted to the Institute.”

4. Internal Auditing at Georgia TechOur mission defined…. Department of Internal Auditing • Conduct reviews and evaluations of management practices and procedures at the Georgia Institute of Technology. Reviews include but are not limited to: • The evaluation of internal control systems to determine their adequacy for the protection of institutional assets, the production of accurate reliable information, and to the assurance that institutional policies and procedures, state and federal laws, and contracts will policies are followed. • Make determinations as to whether the Institute resources( personnel, property, funds, etc.) are being utilized in an active, ethical and efficient manner, including the underlying causes of any inefficiencies are wasteful practices. • Make determinations as to whether desired results were benefits are being achieved from approved programs. • Formulate recommendations to management for improvement in, or correction of, practices and procedures.

5. Internal Auditing at Georgia TechContinued… Department of Internal Auditing • Conduct special studies of procedural or problem areas as requested by appropriate levels of management. • Review information systems to ensure that they are adequately defined, properly justified, documented, and include the necessary internal controls. • Issue reports on the results of completed reviews, discuss the reports with appropriate levels of management, distribute them to the president and other levels of management as deemed appropriate.

6. Internal Auditing at Georgia TechContinued… Department of Internal Auditing • Conduct follow-up on previously reported recommendations. • Serve as liaison with federal, state, and other audit agencies. • Operate independently of all Georgia Institute of Technology operational activities to ensure complete objectivity when conducting reviews of the valuations.

7. Active Internal Audit Primary MissionFour Potential Orientations Business Performance Internal Control Passive Department of Internal Auditing

8. Audit FocusPeeling the onion - Perceived Value to Mgmt. + + Auditor‘ s Traditional Comfort Zone - Department of Internal Auditing

9. IA Value as it Relates to Fraud Department of Internal Auditing • Information analysis expertise on large scale systems for examination of fraud signatures • Providing a collaborative and cooperative bridge for oversight, reporting, streamlined triage, and damage control of fraud incidents • Central focus for facilitation of fraud identification techniques specific to our infrastructure: a complex, dynamic, white collar environment

10. Resulting Value of our Audit Approach Department of Internal Auditing • Senior Management had a direct hand in identifying key areas of risk and setting the scope of reviews... = “BUY-IN” • Audit Plan & Program seen as “valuable,” “useful,” “on-target,” focusing on what matters” • Action Plan becomes a “Management Tool” not just an audit report • Guiding the organization in developing a plan to manage its risks • Lead to centralized policy improvements