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The IAU conducts a range of reviews to evaluate different aspects of the operations of Tung Wah University of Hong Kong. The main categories are:

• Internal Control Review: It assesses the effectiveness of internal control systems within a selected Unit. Each audit focuses on overall general internal controls as well as specific high-risk business areas, identified through risk assessments at the University and Unit levels. Control self-assessments are used to engage Unit staff and strengthen a culture of compliance.
• University-wide Office Management and Expenses Review: A theme-based assessment of the effectiveness and efficiency of controls over office and financial management across individual units within the University. Each review cycle focuses on selected areas to ensure robust compliance and performance.
• Follow-up Review: It assesses whether corrective actions have been implemented as scheduled in response to previous audit recommendations. It verifies the effectiveness of these actions in preventing or reducing the likelihood of occurrence.
• Ad hoc Assignment / Special Investigation: In response to management requests, ad hoc assignments and special investigations are conducted subject to the Audit Committee's approval. These reviews focus on investigating alleged irregularities and are carried out on a one-off basis.

The IAU maintains a five-year rolling Internal Audit Plan that defines its direction, strategies, priorities, and planned activities. The plan is shared with the College Council for comment, submitted to the Audit Committee for endorsement, and ultimately approved by the Board of Governors.

Although every audit review is unique, the audit process is similar for most engagements and normally encompasses 4 stages: Planning, Fieldwork, Reporting, and Follow-up.

1. Planning: The IAU initiates the audit process by conducting preliminary research on the Unit selected for review to understand its structure, major business activities and processes, and relevant laws and regulations. An entrance meeting is then held with the Unit’s management to explain the audit process, discuss the scope and objectives of the audit, and solicit input on issues or areas of special concern. Based on this information, the IAU prepares an audit program, which outlines the fieldwork necessary to achieve the audit objectives.
2. Fieldwork: During this stage, the IAU assesses the soundness of controls through interviews, transactions testing, and documents review. The Unit under review and relevant administrative units are expected to provide the requested documents and arrange meetings within one week of the request, enabling walkthrough and control test. The IAU keeps the Unit’s responsible staff and management informed of significant preliminary findings to ensure timely resolution of identified issues.
3. Reporting: The audit report is the primary deliverable of an audit review and includes audit findings, recommendations for improvement, and management responses. The IAU confers with the Unit’s responsible staff and management at various levels to ensure factual accuracy and the practicality of recommendations. Before issuing the report to the Audit Committee and the College Council, the IAU presents it, along with management responses, to the President's Executive Committee (PEC). Additional comments from the PEC are incorporated into the audit report.
4. Follow-up: After the report is issued, the IAU monitors the implementation of agreed recommendations to ensure that corrective actions are completed and effective. 

To enhance staff members' understanding of internal control responsibilities as well as to foster a culture of compliance, the IAU conducts informative sharing sessions during Staff Forums. These sessions are designed to provide valuable insights, practical tips, and relevant examples to help staff members grasp key concepts and apply internal control techniques effectively in their roles.

The presentations from previous sessions have been uploaded to the Staff Portal. We encourage staff members to access these resources by clicking here (accessible to staff members only).

Useful links to learn more about internal auditing and controls:

• The Institute of Internal Auditors (IIA)
• Information Systems Audit and Control Association (ISACA)
• Hong Kong Institute of Certified Public Accountants (HKICPA)
• Association of College & University Auditors (ACUA)