FAQs and Helpful Tips

Frequently Asked Questions

What’s the difference between internal auditing and external auditing?

Internal auditing is performed by auditors who are employees of the organization. It involves evaluating internal controls to ensure they effectively mitigate risk and comply with the organization’s policies. Internal auditors often identify areas for improvement.

External auditing is conducted by those who are not employees of the organization and typically focuses on verifying accuracy of financial statements.

How do you decide what to audit?

The Office of Audit Services schedules audit projects according to our annual audit plan.

A risk assessment is performed to identify risks to the University. The assessment of these risks helps identify possible audits.

There are some audit that are required by state law.

Some audits are not planned such as reports of fraud, waste, or abuse; allegations of theft, wrongdoing, etc. that require prompt attention.

External auditors may as questions or raise concerns that suggest the need for an internal review.

What if I suspect wrongdoing, or fraud, waste, or abuse of university resources?

According to Policy 071 Preventing and Reporting Fraud, Waste, and Abuse:

“Any official of any agency of the State, having knowledge that a theft, forgery, credit card fraud, or any other act of unlawful or unauthorized taking, or abuse of, public money, property, or services, or other shortages of public funds has occurred, shall report the information immediately to the office of the Comptroller of the Treasury. T.C.A. § 8-19-501(a). To promote compliance with this statute, the University provides a means for University employees and others to report such matters to Audit Services, who subsequently report these matters to the Comptroller’s Office.”

Here are your reporting options:

• Complete and submit the online reporting form
• Email Report.Fraud@mtsu.edu
• Call (615) 898-2914
• The Tennessee Comptroller’s Hotline at 1-800-232-5454 or online at https://apps.cot.tn.gov/ants/submission/submit

What if I am contacted about an audit, program review, or other evaluation of my department by someone other than MTSU’s Audit Services department?

Do one of the following:

• submit the online Reporting of External Audit or Review form
• call us at (615) 898-2914
• email audit@mtsu.edu

 MTSU Policy 70 Internal Audit requires that Audit Services coordinate work with external auditors, program reviewers, and consultants. To facilitate these responsibilities, please forward any notices of reviews and copies of external review reports to Audit Services.

Helpful Tips

Familiarize yourself with University Policies, especially those which relate to your position or department, and refer to them when making decisions. For example:

• Policy 129 Records Retention applies to all departments, in particular designated Records Coordinators.
• Policy 632 P-Card Program applies to all P-Card holders and approvers.
• Policy 010 Ethics and Code of Conduct applies to all employees of MTSU.

Managers and supervisors: Separate the duties of your employees so that they cross-check each other.

Ensure your records are accurate and reconcile your account(s) timely.

Write a brief note on documentation to explain transactions and decisions so that later, if you are asked “why did you do this,” you don’t have to rely on memory.

Consistently approach every task with your best effort, guided by ethics and integrity in all decisions.

Setting the “tone at the top.” Management at all levels sets the example for ethical behavior.

Before you use your P-Card, be sure that it is, in fact, an allowable purchase. If you are not sure, contact P-Card Compliance. Also, be sure to know what documentation is necessary to support the purchase.