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CHAPTER 2 - ADMINISTRATION
Sec. 9. Internal Audit Charter
- Organizational Status
- The internal auditor is a vital part of The University and functions in accordance with the policies established by the President, system administration and the Board of Regents. The internal auditor reports to the President. The organizational status and the support accorded to the internal auditor by the President and senior management are major determinants of the scope and value of the internal audit function to the institution.
- Purpose
- The internal auditor is responsible for providing the President with information about the adequacy and effectiveness of the institution's system of internal administrative and accounting controls and the quality of operating performance when compared with established standards. To accomplish these activities the internal auditor is authorized to have full, free and unrestricted access to all property, personnel and records (including medical).
- Scope of Activities
- Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization. The internal auditor should have a high degree of independence and should not be assigned duties or engage in any activities that he or she would normally be expected to review or appraise. Current editions of the Standards for the Professional Practice of Internal Auditing, published by the Institute of Internal Auditors, Inc. and College & University Business Administration, published by the National Association of College and University Business Officers should serve as guidelines for internal audit activities.
- The objective of internal auditing is to assist the President in the effective discharge of his or her responsibilities by furnishing him or her with objective analyses, appraisals and recommendations concerning the activities reviewed. The internal auditor can attain this objective of service to the President and management by:
- Developing a long range and annual audit plan, using risk analysis, and obtaining approval from the President of such audit plans.
- Including in the annual audit plan time to follow-up on significant findings from previous audits.
- Conducting special audits at the request of the President and management.
- Reviewing all operational areas for their stewardship of resources and compliance with established policies and procedures.
- Reviewing internal administrative and accounting controls, both manual and automated, designed to safeguard resources and insure compliance with laws and regulations.
- Participating in manual and automated system design as an advisor upon internal controls.
- Reviewing general controls in the Data Processing Division and any user department area with access to the administrative computer.
- Investigating reported occurrences of fraud, embezzlement, theft, or waste; consulting with university police and legal counsel; and recommending controls to prevent or detect such occurrences in the future.
- Quality Assurance
- The internal auditor should establish and maintain a quality assurance program to evaluate the operations of the internal auditing department. The purpose of this program is to provide reasonable assurance that audit work conforms with the Standards for the Professional Practice of Internal Auditing. A quality assurance program includes training, supervision, internal reviews and external reviews.
- Internal reviews should be performed periodically by members of the internal audit staff to appraise the quality of the audit work performed. External reviews of the internal audit department should be performed at least once every three years by qualified persons who are independent of the organization.