FINAL INTERNAL AUDIT CHARTER

Mbirungi

Description

THE REPUBLIC OF UGANDA CHARTER FOR INTERNAL AUDIT FUNCTIONS NOVEMBER 2008 1 1.0 Vision To be the leading provider of effective assurance and consulting services to Government. 2.0 Mission To provide independent, objective assurance and consulting services designed to add value and improve Government operations on risk management, control and governance processes. 3.0 Mandate of Internal Audit Internal Audit assists the Accounting Officer accomplish his/her objectives as set by the Public Finance and Accountability Act 2003 (S8 [3]), and in accordance with the Public Finance and Accountability Regulations 27 and 28, by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal control systems and compliance with government processes. The scope of work of the Internal Audit Function therefore encompasses the examination and evaluation of the adequacy and effectiveness of the ministries/departments/agencies system of internal control and quality of performance by carrying out the following assigned responsibilities: 3.1 Review and report on the system for generating financial information and data, and on the reliability and integrity of financial statements and other related accounting and financial information. 3.2 Conduct systems audit to ascertain whether or not internal controls are appropriate to the ...

Informations

• Publié par: Vowyor
• Nombre de lectures: 100
• Langue: English

Extrait

1

T

H

E

R

E

P

U

B

L

I

C

O

F

U

G

A

N

D

A

C

H

A

R

T

E

R

F

O

R

I

N

T

E

R

N

A

L

A

U

D

I

T

F

U

N

C

T

I

O

N

S

N

O

V

E

M

B

E

R

2

0

0

8

2

1.0 Vision

To be the leading provider of effective assurance and consulting services to

Government.

2.0 Mission

To provide independent, objective assurance and consulting services designed to add

value and improve Government operations on risk management, control and governance

processes.

3.0 Mandate of Internal Audit

Internal Audit assists the Accounting Officer accomplish his/her objectives as set by the

Public Finance and Accountability Act 2003 (S8 [3]), and in accordance with the Public

Finance and Accountability Regulations 27 and 28, by bringing a systematic, disciplined

approach to evaluate and improve the effectiveness of risk management, internal control

systems and compliance with government processes.

The scope of work of the Internal Audit Function therefore encompasses the examination

and evaluation of the adequacy and effectiveness of the ministries/departments/agencies

system of internal control and quality of performance by carrying out the following

assigned responsibilities:

3.1

Review and report on the system for generating financial information and

data, and on the reliability and integrity of financial statements and other

related accounting and financial information.

3.2

Conduct systems audit to ascertain whether or not internal controls are

appropriate to the entity, and whether or not they are operating effectively

and efficiently.

3.3

Conduct Value for Money audits on key activities of the public sector entity

to ascertain whether or not value has been obtained (efficiency,

effectiveness, and economy).

3

3.4

Conduct risk management audits to ascertain whether or not management

has set procedures for risk identification and management including frauds

and money laundering.

3.5

Conduct environment audits to ascertain whether or not management has put

in place procedures for identifying environmental risks in its activities, and

for ensuring that these environment risks are monitored and managed

appropriately.

3.6

Conduct periodic reviews to confirm whether or not Government policies

and specific applicable instructions are followed, and confirm whether or

not management is complying with all applicable legislations and

regulations.

3.7

Review management arrangements for ensuring that objectives and values

of the entity are being achieved.

3.8

Conduct reviews on various projects implemented by the entity and report

on project management, implementation, and conduct post implementation

reviews.

3.9

Conduct reviews on resource acquisition, deployment & utilization, disposal

and whether there are appropriate and adequate arrangements for safe

custody of Government assets.

3.10

Conducting special audits and investigations as it may be requested by a

competent authority.

4.0

Authority

The authority of the internal audit function is enshrined in the Public Finance and

Accountability Act 2003 and the regulations. The staff of the Internal Audit Function are

authorized to:

4.1

Have unrestricted access to all functions, records, property and personnel

of the government ministry/department.

4.2

Have free access to the Audit Committee through the Head of Internal

Audit function.

4.3

Access adequate resources, determine scopes of work and apply the

techniques required to accomplish audit objectives.

4

4.4

Access necessary assistance of personnel in ministry/department where

they perform audits, as well as other specialized services from within or

outside the ministry/department.

The Head and staff of the Internal Audit Function are not authorized to:

4.5

Perform any operational duties of the ministry/department /Agencies.

4.6

Initiate or approve transactions external to the internal auditing department.

4.7

Direct the activities of any ministry/department employee not employed by

the Internal Audit Function, except to the extent such employees have been

appropriately assigned to auditing teams or to otherwise assist the internal

auditors.

5.0 Accountability

The Head and staff of the Internal Audit Function in the Ministries, Departments and

Agencies in discharge of their duties shall administratively report to the Accounting

Officer and functionally to the Audit Committee and Commissioner Inspectorate and

Internal Audit to:

5.1

Provide quarterly and annually an assessment on the adequacy and

effectiveness of the ministry/department’s processes for controlling its

activities and managing its risks in the areas set forth under the mission

and scope/ mandate.

5.2

Report significant issues related to the processes for controlling the

activities of the ministry/department, including potential improvements to

those processes, and provide information concerning such issues through

resolution.

5.3

Periodically provide information on the status and the results of the annual

audit plan and the sufficiency of the Internal Audit Function resources.

5.4

Coordinate with and provide information to other oversight organs of

Government as deemed necessary.

5.5

Report on special assignment to appropriate authorities.

5

6.0 Independence

The Staff of the Internal Audit Function in the Ministries, Departments shall report to the Head of Internal

Audit Function, who in turn reports administratively to the Accounting Officer and functionally to the

Audit Committee and Commissioner Inspectorate & Internal Audit.

7.0 Responsibility

The Head of the Internal Audit Function in Ministries, Departments and Agencies has a

responsibility to:

7.1

Prepare annual audit plan using an appropriate risk-based methodology,

and submit it to the Audit Committee for review and approval with a copy

to the Commissioner Inspectorate and Internal Audit for technical

guidance and quality assurance.

7.2

Implement approved annual audit plan including as appropriate any

special tasks or projects requested by the Accounting Officer, the Audit

Committee, the Commissioner Inspectorate and Internal Audit,

Accountant General, the Permanent Secretary / Secretary to Treasury or

other Competent Authority.

7.3

In liaison with the Commissioner Inspectorate and Internal Audit, the

Accountant General and other stakeholders, ensure that the Internal Audit

unit is equipped with adequate staff with sufficient knowledge, skills,

experience, and professional certifications to meet the requirements of this

Charter.

7.4

Evaluate, assess and report on significant emerging issues and their

effects/ impact on operations, and control processes and Internal Audit

function.

7.5

Issue periodic reports to the Audit Committee, Management,

Commissioner Inspectorate & Internal Audit and Accountant General.

7.6

Arrange periodic audit committee meetings and be the secretary for the

proceedings.

7.7

Assist in the investigation of significant suspected fraudulent activities

within the ministry/department and notify management and other

stakeholders of the results.

6

8.0 Implementation of the Internal Audit Charter.

This Charter is a guide to the operationalisation of the Internal Audit provisions in the

Public Finance and Accountability Act 2003 and the regulations. The Accountant General

is responsible for the overall implementation of this Charter. The Accountant General

through the commissioner Inspectorate & Internal Audit shall ensure that the internal

audit function in each Ministry, Department and agency is appropriate to the needs of the

organisation concerned and conforms to the internationally recognised standards in

respect of its status and procedures.

The commissioner Inspectorate & Internal Audit is responsible for quality assurance and

supervision of the Internal Audit function in the Ministries, Departments and Agencies

and will continuously liaise with the Audit Committees.

The Head of Internal audit unit should continuously liaise with the Commissioner

Inspectorate & Internal audit and the Accountant General for appraisal, staffing needs,

training needs, and technical & professional development.

9.0 Relationship with other oversight organs

In the performance of their duties and through appropriate channels, the staff of Internal

Audit shall interact with and complement Parliament, the Office of the Auditor General,

the Inspector General of Government, the Directorate of Public Prosecutions, the

Criminal Investigations Department, the Directorate of Ethics and Integrity and other

government agencies or organizations to promote the efficiency, effectiveness and

economy in utilization of resources in the attainment of national objectives.

10.0 Standards of Audit Practice

All activities and recommendations of the Internal Audit Function will be to the highest

standards and ethical considerations and be consistent with the Government of Uganda

Laws, Professional Standards, Internal Audit and Inspection Manual and Best Practices.

11.0 Review of the charter

The Commissioner Inspectorate and Internal Audit

in consultation with the

Accountant General shall review this charter at least once a year and shall make

recommendations to the Secretary to the Treasury and the Minister on any changes

deemed necessary for the proper functioning of the Internal Audit function.

7

12.0 Conflict of interest

Each Internal Auditor should take personal responsibility to pro-actively declare any conflict of

interest in the performance of their duties in accordance with the Public Service Code of

conduct, the Leadership Code and the professional codes of conduct.