MODEL INTERNAL AUDIT ACTIVITY CHARTER

Harias

Sujets

• management
• risk management

Informations

• Publié par: Dafeg
• Nombre de lectures: 17
• Langue: English

Extrait

NC STATE UNIVERSITY INTERNAL AUDIT DIVISION

CHARTER

MISSION

Per the Institute of Internal Auditors:

INTERNAL AUDITING is an independent, objective assurance and consulting

activity designed to add value and improve an organization’s operations.

It

helps an organization accomplish its objectives by bringing a systematic,

disciplined approach to evaluate and improve the effectiveness of

risk

management, control, and governance process

[emphasis added].

Internal

Auditing reviews the reliability and integrity of information, compliance with

policies and regulations, the safeguarding of assets, the economical and

efficient use of resources, and established operational goals and objectives.

VALUES STATEMENT

The Director and staff of the Internal Audit Division are dedicated to:

•

Demonstrating the highest level of integrity and ethics.

•

Building strong and effective working relationships through mutual

respect and teamwork.

•

Developing partnerships with our clients and our key constituents while

providing quality auditing and consulting services.

•

Recruiting and training high quality individuals from diverse

backgrounds.

SCOPE OF WORK

The Internal Audit Division partners and consults with management, the University

community, and various constituents to help the University achieve its goals and to

support compliance with policies, rules, and regulations.

The Internal Audit Division

works to proactively focus on the risks and exposures which have the greatest impact

to the University while being flexible to react to changing conditions.

Specifically, the

Internal Audit Division works to determine whether the University’s network of risk

management, control, and governance processes is adequate and functioning in a

manner to ensure:

•

Risks are appropriately identified and managed.

•

Interaction with the various governance groups occurs as needed. This

includes General Administration, Office of the State Auditor, and the State

Bureau of Investigation.

•

Significant financial, managerial, and operating information is accurate,

reliable, secure, and timely.

•

Employee’s actions are in compliance with policies and applicable laws and

regulations.

•

Resources are acquired economically, used efficiently, and adequately

protected.

•

Programs, plans, and objectives are achieved and are effective.

•

Quality and continuous improvement are fostered in the organization’s control

process.

•

Significant legislative or regulatory requirements impacting the organization

are administered correctly and issues are recognized and addressed properly.

ACCOUNTABILITY

The Director of Internal Audit, in the discharge of his/her duties, shall be accountable

to the Chancellor, the Board of Trustees through its Audit, Finance, and Planning

Committee (Committee), and to the Vice Chancellor of Finance and Business (Vice

Chancellor) for:

•

Performing an annual assessment of the adequacy and effectiveness of the

organization’s processes for controlling its activities and managing its risks in

the areas set forth under the mission and scope of work.

•

Reporting significant issues, including potential improvements to those

processes, and providing information concerning the appropriate resolution of

such issues.

•

Periodically providing information on the status and results of the annual audit

plan and the sufficiency of the Internal Audit Division’s resources.

•

Coordinating with other control and monitoring functions both internal and

external. This will include areas such as risk management, compliance,

security, legal, ethics, environmental, and external auditors.

INDEPENDENCE

The internal audit activity shall

be free from interference in determining the scope of

internal auditing, performing work, and communicating results.

To provide for the

independence of the Internal Audit Division, its personnel report to the Director of

Internal Audit, who reports directly to the Chancellor and also has a reporting

responsibility to the Committee and to the Vice Chancellor.

The Director shall have

full and independent access to any individuals necessary to perform his/her job.

RESPONSIBILITY

The Director and staff of the Internal Audit Division have responsibility to:

•

Develop a flexible annual audit plan using appropriate risk-based methodology

and submit that plan to the Chancellor, the Committee, and the Vice

Chancellor for review.

•

Consider the scope of work of the external auditors and regulators, as

appropriate, for the purpose of providing optimal audit coverage to the

organization.

•

Implement the annual audit plan, as approved by the Committee, including any

special tasks or projects requested by management and the Committee as

appropriate.

•

Continually re-evaluate the audit plan based on changing conditions and

revise as deemed necessary.

•

Assist in and/or conduct the investigation of significant suspected fraudulent

activities within the organization and notify the Chancellor, the Committee, and

other management of the results. Assist the Office of State Auditors, Fraud

Division, with investigation of various allegations.

•

Issue audit reports to the Chancellor and other management summarizing the

results of audit activities.

•

Keep the Chancellor, the Committee, and the Vice Chancellor informed of

emerging trends and successful practices in internal auditing.

•

Report recent activities and high-risk issues to the Committee at regular

meetings.

•

Perform consulting services, beyond internal auditing’s assurance services, to

assist management in meeting its objectives and to proactively address

issues.

Examples may include facilitation, process design, training, and new

initiatives.

•

Educate the campus-community on University policies, best practices, and the

importance of effective internal controls.

•

Participate on various committees, compliance task forces, and system

development projects to provide guidance and proactively address potential

issues, internal control weaknesses, and inefficiencies.

•

Evaluate and assess significant University functions and new or changing

services, processes, operations, major systems, and control processes

coincident with their development, implementation, and/or expansion.

•

Comply with all requirements of the Board of Governors and/or Legislature

relating to Internal Audit matters.

AUTHORITY

The Director and staff of the Internal Audit Division are authorized to:

•

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

•

Allocate resources, set frequencies, select subjects, determine scopes of

work, and apply the techniques required to accomplish audit objectives.

•

Obtain the necessary assistance of personnel in units of the organization

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

outside the organization.

The Director and staff of the Internal Audit Division are not authorized to:

•

Perform any operational duties for the organization or its affiliates.

•

Initiate or approve accounting transactions external to the Internal Audit

Division.

•

Make decisions that are the responsibility of management.

STANDARDS OF AUDIT PRACTICE

The Internal Audit Divison will meet or exceed the

International

Standards for the

Professional Practice of Internal Auditing

of The Institute of Internal Auditors.

Approved by the Board of Trustees

Audit, Finance and Planning Committee

September 20, 2007