Financial Audit
Overview | Benefits | Areas of Focus
Overview
There are two types of Financial Audit services offered by the Grants and Review Board:
A. Financial Systems and Controls Audit:
Assess the efficiency and effectiveness of internal controls utilized to manage the financial and accounting function of an institution. These audits are completed to promote proper standards of fiscal and management discipline and evaluate implemented measures at the process level designed to prevent, deter, and detect deviation from established controls to reduce risk and vulnerability.
B. Financial Statement Audit:
Assess whether financial statements (income statement, balance sheet, cash flow statement, etc.) present fairly, in all material respects, the financial position, results of operations, and sources and uses of funds in accordance with applicable accounting standards.
Benefits
Areas of Focus
Budgeting
| Assess the effectiveness of the budgeting process including reporting, approval of non-budgeted items, and monitoring of payments against budgeted funds |
Policies and Procedures
| Assess the appropriateness, effectiveness, and compliance of documented financial policies and procedures. Ensure current policies and procedures are simple, clear, and sustainable. |
Fraud
| Evaluate if the Institution has implemented measures at the process level designed to prevent, deter and detect significant fraud and determine if controls need to be implemented or strengthened to reduce vulnerability. |
Compliance
| Assess compliance with any statutory, legal, or tax withholding and reporting requirements |
Accounting Software
| Assess the effectiveness of the accounting software utilized to capture and report financial data. |
Systems and Controls
| Assess if adequate financial mechanisms are in place to safeguard against waste, loss, unauthorized use, or misappropriation of funds, property, or other assets. Validate if accounting and financial systems and practices are appropriately documented and that International Accounting Standards are followed by the Institution. |
Records Management
| Validate that all financial records related to the Institution are adequately filed, easily accessible, complete and maintained in a manner that is in accordance with prevailing industry practices. |