Authorized Preauditor – An authorized preauditor is an employe who has been delegated preaudit approval authority, in writing, by the Chief Business Officer (CBO). The delegation document should specify the types of transactions the employee is authorized to approve and provide an example of the form of the approval (signature, initials, stamp, etc.). The original delegation document should be kept on file in the institution business office. [Ref. Wis. Stat. S. 16.53]

Evidence of Preaudit – All audited transactions should be supported by evidence of preaudit by an authorized preauditor. This evidence can be endorsed directly on the transaction or annexed to the transaction, such as on a voucher summary listing.

Questioned Transactions – Each institution should have a procedure to track or suspend transactions which are returned because the preauditor has determined there is an error, lack of documentation or other problem. A copy of any correspondence (e.g., a standard inquiry form) should remain permanently attached to the transaction after the problem is resolved. Preauditors should track audit discrepancy patterns for statistical analysis purposes and use the data to identify and resolve problem areas.

Audit steps for the types of transactions listed should be completed at the institution. These steps do not encompass all areas which should be reviewed; therefore, prudent judgment should be used to further ensure adherence to prescribed policies and procedures.