Respond to Auditor Inquiry

Financial Affairs, Management Advisory Services   |   Approved July 9, 2015

Purpose

Respond to initial auditor contact or request for information.

Applicability

Employees at University of Maryland, Baltimore (UMB) may be contacted by a range of auditors regarding the business practices and implementation of financial policy.

Instructions

1. Inform Management Advisory Services (MAS) if you receive notification of an audit.  You may have little to no notice when auditors may approach your department.
2. Interview Request. Auditors may request an interview with key personnel to review business procedures. During this process please note the precise material or scope of documents requested. 
   1. Provide clear informative answers.
   2. Only answer questions asked. Answer thoroughly, but be brief and to the point.
   3. Have examples ready to help demonstrate your process and explanations—examples should be recent and ordinary, not anomalies.
   4. Thoroughly explain the process from beginning to end. Do not assume that Auditor has experience in your particular area.
   5. If you do not know the answer, let them know you will get back to them.
   6. If the auditor repeats something you said and asks you to agree to an interpretation, pay close attention before you confirm because they may be preparing to write up a deficiency.
3. After an interview auditors will often request and review documentation to support the interviewee’s assertions. 
4. Documentation Request. Auditors will perform tests of controls and transactions to ensure processes are in compliance with State, University System of Maryland (USM) and UMB requirements. During this testing phase, they will request larger quantities of documentation and have numerous questions.
   1. Keep a list of items requested by and provided to auditors in order to help keep track of documents if they are not returned.
      1. If large amounts of material are requested you may provide an area for the auditors to work in your space.  This may be preferable to allow for continuity in operations.
   2. Understand why the auditor is requesting documentation to help ensure you are providing the correct document and that they understand how the document is used in the process.
   3. If documentation is confidential or sensitive, notify a supervisor and take appropriate measures before providing.
   4. Avoid providing documentation beyond what is specifically requested.
5. If auditor indicates they are concluding audit work or that a potential finding exists email MAS immediately.
   1. Inquire how audit is going and if there are any problems.
   2. Audit findings can be mitigated if you know early. If actions are taken early to correct findings, it could be reflected in the report.
6. If you have any difficulty during any part of this process, contact MAS for further assistance, unless your office has already informed MAS regarding the requests.