Internal Control Reviews

WHAT WE DO

One of the Internal Audit Department’s core audit activities is performing reviews of internal controls, known as Internal Control Reviews (ICRs). These are our traditional audits of “hard controls,” such as evaluating the adequacy of segregation of duties, transfers of accountability, supervisory reviews and approvals, reconciliations, physical safeguards over cash, checks and critical forms (such as handwritten receipts, permits and licenses), and existence of written procedures.

ICRs are performed on the following financial processes in the County:

• Cash Receipts
• Accounts Receivable and Collections
• Cash Disbursements / Accounts Payable
• Revolving Funds
• Procurement
• Payroll
• Trust Funds and Agency Funds
• Budgeting

We have included sample audit programs and Internal Control Questionnaires for certain financial processes identified above. Internal Control Review Templates.

STANDARDS & CRITERIA

The Internal Audit Department complies with Section 1236 of the California Government Code, which states that all county employees who conduct internal audits “…shall utilize the general and specified standards specified in the publication entitled Standards for the Professional Practice of Internal Auditing, as published by the Institute of Internal Auditors, Inc.” for the purpose of evaluating the design and operating effectiveness of internal controls. We also audit for compliance with requirements of various County Accounting Procedures established by the Auditor-Controller Office. County Accounting Procedures.

ICR FOLLOW-UP REVIEWS

Additionally, we perform Follow-Up Reviews on all ICRs to ensure that the audit recommendations are implemented satisfactorily. We perform the Follow-Up Reviews until we determine that all audit recommendations made in the initial ICR are satisfactorily implemented. This sometimes results in performing more than one follow-up review.