Internal Audit Department

350 S. Fifth St., Room 302
Minneapolis, MN 55415

Frequently Asked Questions (FAQ)

What is Internal Auditing?
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

How is a department selected for an audit?
Internal Audit annually reviews key risks facing the City for the upcoming year. If a department scores "high" on the risk assessment, IA recommends the department for an audit. The Audit Committee reviews these recommendations, and approves them for the upcoming fiscal year. See the Annual Risk Assessment Process.

How often do you audit departments?
The frequency of audits depends on the level of risk associated with the department. A high risk department could be audited each year where a department with a lesser associated risk may be part of a several year rotation.

What are internal controls?
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines internal control as:

“Internal control is a process, effected by an entity’s board of directors, management and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the following areas:
·         effectiveness and efficiency of operations
·         reliability of reporting
·         compliance with various laws and regulations”
 
COSO is the organization widely recognized for instituting an internal control framework.

 

 

Last updated Nov 14, 2014