(Note: OLPM sections on this page may be cited following the format of, for example, "BOT.IV.C.1". These policies may be amended at any time, do not constitute an employment contract, and are provided here only for ease of reference and without any warranty of accuracy. See OLPM Main Menu for details.)
1. Internal Audit Department Mission (Purpose)
1.1 The ×î¿ì¿ª½±Ö±²¥½ÁÖé½á¹û Internal Audit Department is an objective assurance and consulting activity designed to provide the Board of Trustees and management with appraisal of the adequacy of, compliance with, and improvement for existing internal controls. The Internal Audit Department helps the ×î¿ì¿ª½±Ö±²¥½ÁÖé½á¹û accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes through both audits and consulting services.
2. Internal Audit Function
2.1 The internal auditing function is an objective appraisal activity within the ×î¿ì¿ª½±Ö±²¥½ÁÖé½á¹û's overall organizational structure. The Internal Audit Department is specifically authorized and directed to:
2.1.1 Have full, free and unrestricted access, consistent with all applicable laws, to all ×î¿ì¿ª½±Ö±²¥½ÁÖé½á¹û functions, files, records, property and personnel.ÌýAll employees areÌýrequested to assist Internal Audit activity in fulfilling its roles and responsibilities.ÌýInternal Audit will also have free and unrestricted access to the Board through itsÌýAudit Committee.
2.1.2 Determine whether management's policies, procedures and instructions are followed in a manner consistent with ×î¿ì¿ª½±Ö±²¥½ÁÖé½á¹û's objectives.
2.1.3 Evaluate any matter that comes to its attention that, in the judgment of the Internal Audit Director, would require a change in policy, procedure, or instruction in order to safeguard ×î¿ì¿ª½±Ö±²¥½ÁÖé½á¹û assets.
2.1.4 Issue reports to members of management who should be informed or who should take appropriate action, showing the results of the internal audit review and offering recommendations for required improvements. The Internal Audit Director will ensure that all formal audit reports are delivered to each member of the Audit Committee of the Board of Trustees.
2.1.5 Obtain and evaluate plans or actions taken to implement audit recommendations from internal or external auditors and recommend further plans or actions if appropriate.
2.1.6ÌýReview and document the adequacy of internal controls of areas under review.
3.ÌýIndependence and Objectivity
3.1 The internal audit activity will remain free from interference by any elementÌýin the organization, including matters of audit selection, scope, procedures,Ìýfrequency, timing, or report content to permit maintenance of a necessaryÌýindependent and objective mental attitude.
3.2 Internal auditors will have no direct operational responsibility or authorityÌýover any of the activities audited. Accordingly, they will not implement internalÌýcontrols, develop procedures, install systems, prepare records, or engage in anyÌýother activity that may impair internal auditor’s judgment.
3.3 Internal auditors will exhibit the highest level of professional objectivity inÌýgathering, evaluating, and communicating information about the activity orÌýprocess being examined. Internal auditors will make a balanced assessment of allÌýthe relevant circumstances and not be unduly influenced by theirÌýown interests orÌýby others in forming judgments.
4. Professionalism and Standards of Internal Audit Practice
4.1 The internal auditing department strives to comply with the InternationalÌýStandards for the Professional Practice of Internal Auditing of The Institute ofÌýInternal Auditors.
4.2 The Institute of Internal Auditors' Practice Advisories, Practice Guides, andÌýPosition Papers will also be adhered to as applicable to guide operations. InÌýaddition, the internal audit activity will adhere to ×î¿ì¿ª½±Ö±²¥½ÁÖé½á¹û’s relevant policies andÌýprocedures and the internal audit activity's standardÌýoperating procedures.
5.ÌýInternal Audit Operations
5.1ÌýThe Internal Audit Director will prepare a proposed audit budget for the next year. The audit budget will outline the scope and objectives of audit programs, projects and other activities, and resources necessary to perform them. The Audit Committee will approve the audit budget and will have overallÌýresponsibility for oversight of the performance of internal audit activities.The Chancellor's Office is responsible for providing the Internal Audit Department with adequate resources to perform the scope of its responsibilities. The Chancellor, through the Vice Chancellor for Financial Affairs, will provide administrative oversight for the performance of the Internal AuditÌýDepartment.
6. Quality Assurance Program
6.1 Internal Audit will strive to maintain a quality assurance and improvementÌýprogram that covers all aspects of the internal audit activity.
7. Audit Committee Function
7.1 The Board of Trustees' Audit Committee has the responsibility for reviewing the activities of the Internal Audit Department to make certain it operates in accordance with this policy.
8. Audit Committee Operations
8.1 The Audit Committee will meet with ×î¿ì¿ª½±Ö±²¥½ÁÖé½á¹û management, the Internal Audit Director and the external auditors at least three times per year and fulfill the duties and responsibilities of the Audit Committee of the Board as outlined in the Audit Committee Charter, Appendix 9 in the Board of Trustees On Line Policy Manual and provide the Board with a report of each meeting.
