The State of Tennessee Tennessee Audit Committee Act of 2005 created the Tennessee Board of Regents Audit Committee. This law states that two of the purposes of the audit committee are:
"Evaluating management's assessment of the body's system of internal controls (4-35-105(1))
"Informing the comptroller of the treasury of the results of assessment and controls to reduce the risk of fraud" (4-35-105 (4))
In response to the passage of this law, management conducts a formal risk assessment of its institution to be approved by the audit committee.
Risk Assessment Tool
The Director of System-wide Internal Audit was charged with the task of researching and determining what products were available to conduct a risk assessment. The Director selected the "Crawford Risk Analysis Tool." The Crawford Tool is a series of linked excel spreadsheets with embedded macros, that, based on management's input, produce various risk assessment documents. To download the components of the tool, click here.
Financial Integrity Act
This Risk Assessment process is also used to comply with the Financial Integrity Act.