Internal Audit assists the University in maintaining effective internal (administrative) controls by evaluating their effectiveness and efficiency and by promoting continuous improvement. Administrative controls are part of what is commonly referred to as internal control. Key elements of the control process are described below. Additional resources on internal control are available on the Internal Audit website.

FIRST

If you suspect fraud, waste, or abuse, you should report it. You can report suspicions without giving your name. Call Internal Audit (406) 994-1805 or the State Legislative Audit Division (800) 222-4446.

SECOND

Know what it means to have internal controls such as segregation of duties. The control structure includes the control environment, risk assessment, control activities, information and communications, and monitoring. Examples of common control activities are accounting systems and policies and procedures.

The Fraud Examiners Manual by the Association of Certified Fraud Examiners specifies the following minimum separation of duties:

If a control system is to have any integrity at all, there must be segregation between the functions of authorization, custody, operation and record keeping.

If there is not enough staff to allow ideal segregation of duties, compensating controls should be implemented. Examples of compensating controls are a manager performing reconciliations, random testing, and document review.

THIRD

Determine the greatest internal control weaknesses in your department. Discuss the weaknesses with your supervisor. Call Internal Audit if you need help or a sounding board. Make appropriate changes.

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