Frequently Asked Questions

Q: What is internal auditing and why is it important?

A: According to The Institute of Internal Auditors, internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal auditing is the cornerstone of strong governance, internal audit bridges the gap between management and the board, assesses the ethical climate and effectiveness and efficiency of operations, and serves as an organization’s safety net for compliance with rules, regulations, and overall best business practices. 

Q: How do internal and external auditors relate and differ?

A: Both internal and external auditors are independent from the activities they audit; however, the Internal Auditor is a District employee while external auditors are not employees of the District.  Internal and external auditors have mutual interests regarding the effectiveness of internal controls.The Internal Auditor’s scope of work is comprehensive.  Her objectives are determined by professional standards, the Board of Education and management. The Internal Auditor is concerned with all aspects of the organization, both financial and non-financial.

"External auditor" most frequently refers to an independent accounting firm or Auditor of State hired annually to provide an independent opinion on the District's financial statements. External auditors also provide assurance of compliance with federal regulations and grant terms.

Q: What are internal controls?

A: Per the COSO framework, internal controls are as a process, effected by the District’s Board of Education, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

• Effectiveness and efficiency of operations.
• Reliability of financial reporting.
• Compliance with applicable laws and regulations.

The District’s management is responsible for establishing and maintaining a system of internal controls within the organization. Internal controls are those structures, activities, processes, and systems that help management effectively mitigate the risks to the District’s achievement of objectives. Management is charged with this responsibility on behalf of the District’s stakeholders and is held accountable for this responsibility by the Board of Education, as well as the Audit Committee. As the Internal Auditor is independent of management, she helps ensure key internal controls are in place and operating as intended.

Q: How does the internal audit activity go about prioritizing its resources?

A: Effective prioritization involves staying in sync with the District’s risk priorities and taking a risk-based approach to internal audit planning. By continuously monitoring organizational changes that might alter the plan, the Internal Auditor should be well equipped and positioned to make informed and educated recommendations to management and the Board of Education on the most effective use of internal audit resources. 

Q: Where can I learn more?

A: The helpful links below will guide you to additional auditing and accounting resources.

American Institute of Certified Public Accountants: Accounting guidance, tools, best practices and training (www.aicpa.org)
Institute of Internal Auditors: Professional guidance and standards for Internal Auditors (www.theiia.org)
Association of Certified Fraud Examiners: Standards for Certified Fraud Examiners (www.acfe.com)
Committee of Sponsoring Organizations (COSO): Internal controls guidance (www.coso.org)
Ohio Auditor of State: Audit reports, technical guidance, ORC/OAC compliance (www.auditor.state.oh.us)
Ohio Ethics Commission: Ethics laws, advisory opinions, financial disclosure requirements, and guidance on conflicts of interest for public officials and employees (www.ethics.ohio.gov)
Ohio Revised Code: Codes which dictate District operations (www.codes.ohio.gov)
Ohio Department of Education: Regulations, policies and procedures that govern District Operations (www.education.ohio.gov)