Discusses the use of undergraduate accounting students to assist the one-person internal audit department at Wright State University in Dayton, Ohio, in conducting a low-cost audit of the school. The audit, conducted as part of the accounting department's Auditing II course, helped students develop interviewing and documentation skills and…

Discusses the Sarbanes-Oxley Act of 2002, a formal response to major corporate and accounting scandals, exploring its implications for higher education and promoting it as an opportunity both to reassess best practices for audit committees and executives and to refresh the ongoing dialogue with external auditors. (EV)

This article describes expanded audit requirements for managing federal awards to colleges and universities, as outlined in Circular A-133 of the Office of Management and Budget. Applying lessons learned by state and local governments in implementing A-128 audits is recommended to help assure a successful, cost-effective transition. (MSE)

Elements in the effort to make the annual Nova University (Florida) audit more time efficient included gaining agreement with the auditors for a specific closing date; coordinating efforts of various departments involved; identifying and eliminating major obstacles; streamlining procedures when needed; and continuous coordination and monitoring of…

A survey of 288 college and university auditors investigated patterns in their appointment, reporting, and supervisory practices as indicators of independence and objectivity. Results indicate a weakness in the positioning of internal auditing within institutions, possibly compromising auditor independence. Because the auditing function is…

Suggestions for implementing new National Collegiate Athletic Association guidelines for intercollegiate athletics program financial audits include forming an internal task force, preparing an organization chart, choosing the type of audit, conducting a survey of booster groups, preparing a schedule of revenues and expenditures, selecting an…

The first two stages of the financial audit required by federal Circular A-133, for nonprofit institutions receiving $100,000 or more in federal funding and cost-type contracts, as implemented by the University of Southern California, are described. Audit observations, issues emerging from the experience, and recommendations for other colleges and…

A federal tax official specializing in tax-exempt organizations discusses the relatively new use of coordinated examination audits. Significant issues being raised as the use of such audits expands are examined, including employment tax, contractors, withholding on students, unrelated business income, bond financing, the audit process, corporate…

A revision in the federal regulations governing audits of student financial aid programs will require changes in present practices concerning student aid "servicers" that administer financial aid in small institutions and may lead to modifications in servicing contracts and financial terms. The new requirements are described in detail. (MSE)

The objectives and content of the Internal Revenue Service (IRS) proposed comprehensive guidelines for conducting audits of tax-exempt organizations are outlined, and feedback received from higher education institutions concerning those guidelines are summarized. Comments reflect institutions' concerns about the IRS' lack of understanding of…

This article reviews and comments on various issues addressed by the 1994 Internal Revenue Service (IRS) audit guidelines for nonprofit organizations. It focuses on topics especially relevant to colleges and universities, such as unrelated business income, employment taxes, fringe benefits, fund raising, research and contracts, scholarships and…

This article argues that, to be effective and ethical organizations, colleges and universities should develop and implement codes of conduct and staff training programs in business ethics and fraud prevention, which are most logically managed by the internal audit department of the institution. (MSE)

A survey of 90 colleges and universities found that 40 percent have internal audit departments. Information on auditor time allocation, salary ranges, departmental independence, and auditor roles and responsibilities was collected. A summary analysis by type of institution (large, small, research, nonresearch, public, independent, four-year,…

Describes and evaluates four alternatives for planning and budgeting for capital reinvestment for college and university facilities: physical plant auditing; a depreciation-based approach; percentage of current replacement value; and facility subsystem modeling, or life-cycle modeling. Each has advantages and limitations in budgeting for and…