Financial audits examine the accounting and reporting of financial transactions. The auditor reviews controls over the receipt and disbursement of funds, the safeguarding of assets, and the recording of transactions in accordance with Generally Accepted Accounting Principles, or GAAP.
Compliance audits review whether all applicable laws, regulations, policies, and procedures are followed. Recommendations typically call for improvements in processes and controls intended to ensure compliance with regulations.CSU Campuses are subject to the following
- Internal Revenue Code
- California Education Code
- State Administrative Manual (SAM)
- State University Administrative Manual (SUAM)
- Resolutions and policies established by the CSU Board of Trustees
- A-133 Single Audit for nonfederal entities that expend $500,000 or more of federal awards in a fiscal year (OMB Circular A-133)
- Executive Orders issued by the Chancellor
- Integrated CSU Administrative Manual (ICSUAM)
- Policies and directives issued by the Chancellor's Office, usually in the form of Coded Memoranda
- Auxiliary Triennial Internal Control/Compliance Audit
- Campus policies and procedures
Internal Control audits
Internal Control audits are a specialized type of audit that focus on the internal control environment of automated information processing systems and are typically conducted by the Office of the University Auditor.
Investigations are conducted when there is a suspicion or allegation of fraud, embezzlement or waste. Investigations involve the examination of records and interviews of employees to determine if any illegal activities have taken place, which if proven, normally lead to disciplinary action and/or criminal prosecution.