OESC Internal Audit and Fraud Reporting
What is Internal Auditing?
Internal auditing is an independent appraisal function established within an organization to examine and evaluate the adequacy and effectiveness of the organization's internal control system and its overall quality of performance. Internal auditing furnishes top management with analyses, appraisals, recommendations, counsel, and information concerning the activities reviewed.
Why Was Internal Auditing Established at OESC?
An effective internal audit department plays a valuable role in assisting the Commission and Directors in fulfilling their responsibilities and helping the organization achieve its strategic business objectives. The Commission and the Executive Director wanted to make sure that operations throughout the Agency are reviewed at appropriate intervals to determine whether they are efficient and operated in accordance with management instructions, federal and state laws, regulations, policies, and procedures. In addition, they wanted to be certain that:
- Resources are adequately protected.
- Programs, plans and objectives are achieved.
- Quality and continuous improvement are fostered in the organization’s control process.
The Director of Internal Audit Reports to Whom?
The OESC Internal Audit Department is independent of all activities that they audit. The organizational status of the department is sufficient to permit the accomplishment of audit responsibilities. The Director of Internal Audit department reports directly and simultaneously to the Executive Director and the Commission.
Operational auditing is a technique for regularly and systematically appraise a grant or function’s effectiveness with the objectives of assuring management that its goals are being carried out and/or identifying conditions capable of being improved.
Operational Auditing is using common sense, and logical audit techniques with a management perspective and applying them to organizational objectives, operations, controls, communications, and information systems. The auditor is more concerned with whom, what, when, where, why, and how of running an efficient and effective operation than just accounting and financial aspects of the business function.
Financial audits determine whether financial statements of the OESC present fairly the financial position and the results of financial operations in accordance with generally accepted accounting principles
Program and Compliance Audits
Program audits determine whether the desired results or benefits established by the granting authority or other authorizing bodies are being achieved and whether the agency has considered alternatives, that might yield desired results at a lower cost. Compliance audits determine whether the OESC has complied with laws and regulations.
Why Audit Any Activity?
Audits of some type have been conducted since there has been commerce. The primary purpose of these early audits was to detect defalcations and to determine whether persons in fiduciary positions were acting and reporting responsibly. As civilization expanded, so did the internal auditing profession. Modern auditors understand the goal of error detection could be accomplished more effectively through an adequate system of internal controls.
What is Internal Control?
Internal control is any action taken by Management to enhance the likelihood that established objectives and goals would be achieved. Control results from Management’s planning, organizing, and directing. The overall control system is conceptual in nature. It is the integrated collection of systems used by an organization to achieve its objectives and goals (SIAS #1). Internal control is a broadly defined process, effected by the Commissioners, Executive Director, Directors, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories (COSO):
- Effectiveness and efficiency of operations.
- Reliability of financial reporting.
- Compliance with applicable laws and regulations.
Reporting Internal Fraud
When filing a report, please include as many details as possible.
Oklahoma Employment Security Commission
ATTN: Internal Audit Department
PO Box 52003
Oklahoma City, OK 73152-2003
All calls and information are confidential. You may remain anonymous.