Statewide Office of Audit and Consulting Services

Audit Policy (Charter)


The University of Alaska established the authority and responsibilities of Audit and Consulting Services with the adoption of Board of Regents Policy 05.03, a reproduction of which is below. The department name was changed from Internal Audit to Audit and Consulting Services as per the April 2013 Board of Regents Meeting.


REGENTS’ POLICY
PART V – FINANCE AND BUSINESS MANAGEMENT
Chapter 05.03 - Internal Audit

P05.03.010. Internal Audit: Purpose of P05.03.010 - 05.03-018.
By adopting P05.03.010 - 05.03.018, the board establishes the general authority and responsibilities of the university's internal audit department.

P05.03.012. Internal Audit: Introduction.
A. Internal auditing is an independent appraisal activity established within the university to examine and evaluate its activities to meet the needs of the board 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.

B. 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.

P05.03.014. Internal Audit: Authority.
A. The director of internal audit shall report administratively to the chief finance officer and functionally to the Audit Committee of the board. The chief finance officer 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 the director’s sole opinion warrant direct attention or action by the board and shall report to management any matters that in the director’s sole opinion warrant direct attention or action by management.

B. 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.

C. 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.

D. The chief finance officer 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 chief finance officer may request special audits by the department in order to meet the officer’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.

P05.03.016. Internal Audit: 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’s 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 semi-annually. Formal audit reports shall be issued to the chief finance officer, 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 the next scheduled committee meeting in accordance with procedures established by the audit committee.

P05.03.018. Internal Audit: Responsibilities.
A. The internal audit department 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.

B. 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:

1. evaluating the adequacy and effectiveness of the university's system of internal accounting and operating controls;
2. reviewing the reliability and integrity of financial and operational information;
3. monitoring compliance with the policies, plans, procedures, laws and regulations that have an impact on university operations;
4. reviewing the means of safeguarding assets and verifying their existence when appropriate;
5. appraising the economy and efficiency with which resources are employed;
6. reviewing financial and operational activities and programs to determine if results are consistent with established goals, objectives and authorized plans;
7. serving as liaison for coordination of all external audit activities;
8. assisting in fraud and theft assessment at the request of legal counsel and executive management; and
9. providing staff guidance to university staff and managers on matters relating to audits and internal control functions.

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