| A. |
Purpose
This policy defines the general authority and responsibilities of the
university's internal audit department.
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B. |
Introduction
Internal auditing is an independent appraisal activity established within the
university to examine and evaluate its activities to meet the needs of the
Board of Regents and executive management. Internal audits may include
financial, performance, operational and compliance audits. The mission of the
internal audit department is to assist the Board and management in the
effective discharge of their fiduciary and administrative responsibilities by
providing analysis, appraisals, counsel, information and recommendations
concerning activities reviewed and by promoting effective controls for the
recording and reporting of operational activities and for the custody and
safeguarding of assets.
The internal audit department will abide by the Institute of Internal Auditors'
(IIA) Code of Ethics and will conduct audit activities in accordance
with Governmental Auditing Standards published by the Comptroller
General of the United States and Standards for the Professional Practice of
Internal Auditing issued by the IIA.
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| C. |
Authority
The director of internal audit shall report administratively to the Vice
President for Finance and Comptroller and functionally to the Audit Committee
of the Board of Regents. The Vice President for Finance and Comptroller shall
appoint and may remove the director of internal audit with the advice and
consent of the Audit Committee. The director of internal audit is authorized
to independently establish the annual audit plan and the scope of audit
activities. The director shall report to the chair of the Audit Committee any
matters which in his or her sole opinion warrant direct attention or action by
the Board and shall report to management any matters which in his or her sole
opinion warrant direct attention or action by management.
The director of internal audit and the internal audit staff shall have full,
free, and unrestricted access to all university records (either manual or
electronic), property, and personnel as required for the conduct of their audit
responsibilities.
All documents and information provided to the internal auditors shall be
handled in the same prudent manner as expected of those who are normally
accountable for them.
The Vice President for Finance and Comptroller shall supervise the director of
internal audit except for matters relating to the establishment of the scope of
audit activities and the reporting of audit findings and recommendations. The
Vice President for Finance and Comptroller may request special audits by the
department in order to meet the Vice President's responsibilities under
Regents' policies and shall be responsible for and have the authority to
require the implementation of recommendations or other resolution of audit
findings and the distribution of audit reports.
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| D. |
Reporting
The director of internal audit, in conjunction with the Regents' external
auditors, shall annually present a complete audit plan for the university to
the Board of Regents' Audit Committee for review and approval. The director of
internal audit shall provide a written report on the status of all internal and
external audit activities to the Audit Committee quarterly. Formal audit
reports shall be issued to the Vice President for Finance, who will be
responsible for the implementation of recommendations or other resolution of
audit findings and the distribution of audit reports. Copies of all formal
audit reports, including management's response, will be provided to the Audit
Committee within sixty days of report issuance in accordance with procedures
established by the Audit Committee.
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| E. |
Responsibilities
The internal auditors shall observe and review operations, activities and
procedures as they exist and function, report findings and make recommendations
for improvement or correction to the appropriate individuals or management
staff.
As a staff function, internal auditors shall not have the authority to require
changes in operating practices, procedures, or personnel. The principal
responsibilities shall include:
- Evaluating the adequacy and effectiveness of the university's system of
internal accounting and operating controls.
- Reviewing the reliability and integrity of financial and operational information.
- Monitoring compliance with the policies, plans, procedures, laws and
regulations that have an impact on university operations.
- Reviewing the means of safeguarding assets and verifying their existence when appropriate.
- Appraising the economy and efficiency with which resources are employed.
- Reviewing financial and operational activities and programs to determine if
results are consistent with established goals, objectives and authorized plans.
- Serving as liaison for coordination of all external audit activities.
- Assisting in fraud and theft assessment at the request of legal counsel and executive management.
- Providing staff guidance to university staff and managers on matters
relating to audits and internal control functions.
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(09-30-94)
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