OIA FAQs

Internal auditing is an independent, objective assurance and advisory service 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 governance, risk management, and control processes.

The board is responsible for enabling the independence of the internal audit function. Independence is defined as freedom from restrictions or limitations that impair the internal audit function’s ability to carry out its responsibilities in an unbiased manner.

Objectivity is an unbiased mental attitude that allows internal auditors to make professional judgments, fulfill their responsibilities, and achieve the Purpose of Internal Auditing without compromise.

Office of Internal Audit reports directly to the Audit Committee. This reporting relationship promotes independence and ensures adequate consideration of audit findings and recommendations. OIA has the authority to audit all activity within DEQ and has full and complete access to any of the Department’s records, physical properties, information systems and personnel relevant to any audit function.

Areas are selected for an audit based on many factors, including risk analysis, management request and time elapsed since last audit.

Management of the area to be audited will be notified when an audit is to be performed. The Office of Internal Audit will contact the appropriate management to request preliminary information to gain further understanding and to develop the objective and scope.  A formal meeting will then be scheduled as an engagement meeting. and the scope and objectives of the audit will be discussed. The audit process will be explained and any concerns or questions regarding the audit will also be discussed.

Audits can take from a few days to several weeks depending upon the complexity of the operation, regulations, legislation, as well as the volume of the data to be reviewed. During the opening conference, the estimated length of the audit will be discussed. The Office of Internal Audit will keep you informed about the progress throughout the audit.

Management of the area being audited will receive the draft audit report and have an opportunity to prepare a written response to each finding and recommendation noted during the audit. After reviewing management’s responses to the draft audit report, the Office of Internal Audit will make any changes deemed necessary to the report. Any remaining differences are worked out with management prior to the issuance of the final audit report. 

The final audit report will be distributed to the Audit Committee, and other members of senior management and/or department management as may be appropriate.

Management is primarily responsible for corrective actions. Prior to final issuance of the audit report, management will have an opportunity to review a preliminary draft of the audit report and include a response and action plan. Senior and department management of the area audited share overall responsibility for ensuring adherence with laws, regulations, policies and procedures. The audit results should be communicated to project staff and other administrative personnel. Corrective action plans should be implemented in a timely manner along with cooperating with OIA regarding follow-up procedures.

To protect the DEQ from fraudulent activities, an appropriate level of segregation of duties should be instituted. This means separating the responsibility for key processes between multiple individuals to maintain checks and balances.

Yes, we need to be informed of all audits conducted by external parties. Please call (Arietty Brush), Office of Internal Audit at (919) 707-8475, or send an email to arietty.brush@deq.nc.gov tell us about the scheduled review.

Internal audit work papers are confidential except as otherwise provided in this section or upon subpoena issued by a duly authorized court (§ 143-748.  Confidentiality of internal audit work papers] ).A published internal audit report is a public record as defined in G.S. 132-1 to the extent it does not include information which is confidential under State or federal law or would compromise the security of a State agency. An internal auditor shall maintain for 10 years a complete file of all audit reports and reports of other examinations, investigations, surveys, and reviews conducted under the internal auditor's authority. Audit work papers and other evidence and related supportive material directly pertaining to the work of the internal auditor's office shall be retained in accordance with Chapter 132 of the General Statutes. Unless otherwise prohibited by law and to promote intergovernmental cooperation and avoid unnecessary duplication of audit effort, audit work papers related to released audit reports shall be made available for inspection by duly authorized representatives of the State and federal government in connection with some matter officially before them. 

Any DEQ staff who has a reasonable basis for believing fraud, waste or abuse has occurred is responsible for reporting such incidents. You may do so by calling (919) 707-8500, completing and submitting the Report Form on-line. Any such complaint or concern may be reported anonymously.