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Milianaw University Internal Auditing Case

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.CARTER'S ASSIGNMENT
Over the last month, Carter had supervised a review of the purchasing procedures that the
Milianaw University used to furnish and equip Harris Hall, the new administration building. The building had opened seven months ago in the fall of 1992, and some faculty and staff had criticized the furniture and equipment, especially in the Office of Business Affairs, as too expensive. Two issues seemed to be of particular concern. First was the reportedly lavish office suite of
Donny Lockwood, the vice president for business affairs. Beautifully crafted of solid wood, the desk alone was rumored to be worth more than $10,000. Then there was the addition of over 50 workstations and related equipment to the administrative computer system, when, it was claimed, cheaper microcomputers would have done the job. Apparently, the equipment had been acquired without board approval, on the authorization of the vice president for business affairs, and had cost more than $290,000. In addition to these complaints, there were allegations that Lockwood had used cars from the university motor pool as personal vehicles; and also misused his authority with regard to the purchase of insurance policies.
In response to these complaints, the president requested that Keith Tiller, the director of internal auditing, conduct a review of the Harris Hall purchasing procedures and university purchasing policies. During the course of the review, the president expanded its scope to include the award of university insurance contracts. It was Carter's charge to analyze Tiller's findings and report her conclusions directly to the president, along with any recommendations for changes. Tiller's report now lay on her desk. The president expected her response within the week.

MILIANAW UNIVERSITY
The University is controlled by a board of trustees, who are appointed by

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...Internal auditing Case study QUESTION 1 SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business venture. Strengths There no strengths of this university | Weakness * One of the weaknesses of university was the inadequate segregation duty. Mr. Lockwood had a wide span of control and was unable breach certain policies .for example purchasing and university policies. * Another weakness is that the internal auditing department was not independent therefore it could not detect error or abasement of the university system. * The president did not perform is work effectively manner because he did not check in on vice president to ensure he was doing it effectively after giving so responsibility. * Promoting unethical conducts. For example lying to board about insurance companies. | Opportunities * One major opportunity is that they could reduce the amount of years they would be operating in deficits by raising the school fee. | Threats * One major threats is that university would operate at loss for the next biennium * Raising the school is also a threat because it might be higher that there competitors which force the customer to chose there competitors if they can offered it . | Question 2 How important is internal control in a university environment? Internal controls are the procedures that are put in place to help achieve the objectives...

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