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Established within the University of Texas System (UT) as a service to the Board of Regents, Chancellor, and executive staff of the UT System, the System Audit Office provides an independent internal audit appraisal function to examine and evaluate UT System activities.
The internal audit activity is established by the UT System Board of Regents. The internal audit activity’s responsibilities are defined by the Audit, Compliance, and Risk Management Committee (ACRMC) of the UT System Board of Regents as part of its oversight role.
The System Audit Office’s mission is to serve the UT System Board of Regents, UT System Administration, and UT System institutions by providing risk-based and objective assurance, advice, and insight to protect and enhance organizational value. We support UT System’s pursuit to improve the human condition through an internal audit program of excellence and innovation.
- Provide to management, the System Administration Internal Audit Committee (IAC) and the ACRMC independent, objective evaluations of the operations, policies, procedures, and controls at UT System Administration.
- Provide for UT System management, the IAC, and the ACRMC oversight of all internal audit departments in the UT System to assure that an effective internal audit function which includes a risk-based annual and long-range audit plan, a reporting mechanism, and a quality assurance program, is in place Systemwide.
- Provide to the internal audit departments of mid-size and small institutions supplemental assistance and resources so that they can provide institutional management, institutional IACs, and the ACRMC with independent, objective evaluations of their institutional operations, policies, procedures, and controls.
Governance and Structure
The System Audit Office's authority is formally defined in an internal activity charter approved by the System Administration IAC. Oversight and guidance for the audit function is provided by the IAC, and the ACRMC. The internal auditor is authorized to have full, free, and unrestricted access to all UT System property, personnel, and records. Systemwide internal audit activities and authority are detailed in UT System Policy UTS129.
The UT System Chief Audit Executive is appointed by the ACRMC after nomination by the Chancellor. The Chief Audit Executive reports functionally to the Board of Regents through the ACRMC and administratively to the General Counsel to the Board of Regents. The Chief Audit Executive also has direct access to UT System Administration executive management, including the Chancellor.
Each institution and System Administration are required to have an internal audit department and an internal audit committee. The institutional chief audit executives are appointed by the institutional presidents, in consultation with the UT System Chief Audit Executive. Institutional chief audit executives report directly to their presidents and their internal audit committees, and indirectly to the ACRMC through the UT System Chief Audit Executive.
Audit committees should consist of executive management and members from outside the organization. Any external members should be familiar with the institution and the responsibilities of an audit committee. Audit committees should meet quarterly to facilitate direct communication between the chief audit executives and executive management. The essential functions performed by the audit committees shall include approval of the annual internal audit work plans, consideration of work schedules and activity reports, and discussion of results of audits, including significant findings and recommendations.
Professional Auditing Standards
The internal audit profession is guided by standards developed by The Institute of Internal Auditors (IIA). The IIA's International Standards for the Professional Practice of Internal Auditing (Standards) serve as a framework for performing internal auditing, and consist of mandatory requirements for performing internal audit work.
- Financial Audits
- Operational Audits
- Compliance Audits
- Information System/Technology Audits
- Follow-up Audits
- Consulting / Special Requests
- Identifies strengths and opportunities for improvement in a department's daily operations
- Determines status of internal control
- Assists in providing assurance of compliance with organizational and legislative regulations, policies or procedures.