Performance Audits determine (1) whether the department/division is acquiring, protecting, and using its resources (such as personnel, property, and space) economically and efficiently; and (2) the causes of inefficiencies or uneconomical practices.
Program Audits determine (1) the extent to which City Council-established desired results or benefits are being achieved; (2) the effectiveness of organizations, programs, activities, or functions; and (3) whether the audited department/division has complied with laws and regulations applicable to the program.
Audits that focus on efficiency issues typically evaluate the reasonableness of program costs relative to the results of services produced. Auditors may assess the relationship between staffing and other costs and measurable program benefits. Auditors may also (1) determine if a program has established appropriate goals and objectives; (2) review the adequacy of management's system for measuring success; (3) assess the extent to which desired levels of results are achieved; and (4) identify factors that inhibit satisfactory performance.
Audit reports make recommendations to management to correct inefficient practices and/or improve procedures to maximize resource utilization and productivity. The reports may also make recommendations to change management systems, City policies, and ordinances.
Financial Audits include financial statement and financial related audits. Financial statement audits provide reasonable assurance that the financial statements of an audited entity present fairly the financial position, results of operations, and cash flows in conformity with generally accepted accounting principles.
Financial related audits determine whether (a) financial information is presented in accordance with established or stated criteria, (b) the City has adhered to specific financial compliance requirements, or (c) the City’s internal control structure over financial reporting and/or safeguarding assets is suitably designed and implemented to achieve the control objectives. In accordance with the City Charter, an independent accounting firm conducts the financial statement and financial related audits of the City. The Office of the City Manager - Finance Division coordinates the work of the independent accounting firm. The annual audit determines whether the financial statements fairly present the City's financial condition according to generally accepted accounting principles. The annual financial audit also includes reviews to determine City compliance with laws and regulations, particularly for those programs receiving federal funding.
The nature and scope of any financial audits Internal Audit performs differ significantly from the external audit of the City's financial statements. The primary emphasis of the financial audits Internal Audit conducts is to assess whether the City's internal control systems ensure:
- Resources are used in accordance with laws, regulations, and policies;
- Reliable data are obtained, maintained, and properly disclosed in financial and management reports; and
- Resources are safeguarded against loss due to fraud, theft, errors, and mismanagement.
These audits provide City Management with the objective information required to ensure that internal control systems are working as intended.
An information technology audit,
or information systems audit, is an examination of the controls
within an Information Technology (IT) infrastructure. An IT audit is the process of collecting and evaluating evidence of an organization's information systems, practices, and operations. The evaluation of obtained evidence determines if the information systems are safeguarding assets, maintaining data integrity, and operating effectively and efficiently to achieve the organization's goals or objectives. These reviews may be performed in conjunction with a financial statement audit, internal audit, or other form of attestation engagement.
Special Studies Internal Audit is occasionally requested to do thorough and impartial data collection, analysis, and reporting
of a function/program. Special studies and reports are subject to the same rigorous audit methodology regarding data collection and quality control reviews. Special studies are intended to provide timely and objective information to the City Manager, Assistant City Managers, and Department Directors.
Training Internal control
is, to some degree, every City employee’s responsibility. To
promote awareness of internal control based on the COSO model,
the Internal Audit Division offers a 3-hour course
“Understanding Internal Control” through the Human Resources M3P
Learning Center. Through instructor discussion, examples and
case studies, participants will leave with the knowledge and
tools to apply the concepts of internal control and internal
control activities in their day-to-day operations/functions.
Visit the Human Resources Training website (http://www.riversideca.gov/human/m3p/) for the course schedule.